Oracle Shares Plunge 53% From Yearly Peak as $300B OpenAI Deal Sparks Skepticism
Oracle shares have dropped over 53% from their 52-week peak since October 2025 and are down nearly 18% year-to-date, trading just above technical support near $140. Investors question whether debt-funded AI data center capex and a five-year OpenAI deal valued at roughly $300 billion will deliver expected returns.
1. Share Performance and Technical Levels
Since October 2025, Oracle’s share price has fallen more than 53% from its 52-week high and is off nearly 18% year-to-date, recently testing support around $140 just below its 20-day moving average.
2. AI Infrastructure Investments and Capital Expenditures
The company has ramped up debt-funded spending on AI data centers and cloud infrastructure under Oracle Cloud Infrastructure, driving concern over near-term free cash flow and return on investment.
3. Multi-Year OpenAI Agreement Fuels Mixed Reactions
Reports suggest a multi-year deal with OpenAI valued at roughly $300 billion over five years, generating both optimism about Oracle’s AI positioning and skepticism about execution risks and timeline uncertainties.