The red-hot trade backing artificial intelligence-related stocks has taken a bruising from a disappointing report from Oracle, reigniting concerns about frothy valuations and an AI bubble. Still, investors say reasons for optimism about AI remain intact,

Oracle (ORCL) shares fell more than 11% in after-hours trading, following the Q2 fiscal 2026 report, a sharp repricing that seemingly contradicts the main narrative of booming AI demand.

Oracle has spent years piling up debt to fund share buybacks, which raises the risk level of adding even more debt to the balance sheet. Thanks to heavy spending on AI infrastructure, Oracle ended the second quarter with about $108 billion in debt. That's up from $92.6 billion in May. The company completed an $18 billion bond sale in September.

Oracle stock tumbled after its second-quarter report. Heavy spending on AI infrastructure has been slow to boost revenue, and profitability is a question mark. Investors appear to be skeptical of the AI growth narrative.

Oracle's earnings also pulled down shares in other AI-related technology companies on Thursday. Nvidia's stock fell more than 3.5%, while shares of Advanced Micro Devices (AMD) were nearly 4% lower.

Oracle stock plummeted 11%, wiping off $25 billion from Larry Ellison’s net worth. The plunge came after the company posted its latest earnings report, in which

Oracle shares slumped 15.6% on Thursday, dragging other technology stocks, as concerns mounted about the company's massive AI spending and the lack of a clear timeline on returns from the investments.

Oracle’s stock fell more than 12% on Thursday on growing fears about the software giant’s massive AI spending — shaving more than $30 billion off co-founder Larry Ellison’s fortune. The Texas-based tech company’s stock tumbled to $194 a share from around $223 a share at the start of trading — wiping out $90 billion in market capitalization.

Oracle Corp. shares fell the most in more than 24 years after the company reported a jump in spending on AI data centers and other equipment, rising outlays that are taking longer to translate

Oracle co-CEOs Clay Magouyrk and Mike Sicilia weighed in on the cloud applications, infrastructure and multicloud businesses during the database vendor’s Q2 earnings call.

Oracle’s credit default swaps have surged to near-record levels as soaring AI spending and a $100 bn debt load fuel fears of rising credit risk across the tech sector.