Oracle Stock Plummeted by 25% in the First Half of 2026, and This Dire AI Warning Might Be Why
Some of Oracle's biggest data center customers might be unable to meet their obligations.
Overview
Oracle (NYSE: ORCL) was founded as a software company in 1977, before transitioning first to cloud computing and later to artificial intelligence (AI) infrastructure. It operates some of the fastest and most cost-efficient AI data centers in the world, and its order backlog suggests demand is through the roof.
Nevertheless, Oracle stock plummeted by 25% during the first half of 2026, and it's down by more than 50% from last year's record high. Wall Street is concerned that some of Oracle's largest AI customers won't be able to fulfill their obligations, which would be catastrophic because the company has taken on an enormous amount of debt to build more data centers.
Details
Those concerns reached a crescendo on June 10, when Oracle released its annual report for fiscal 2026 (ended May 31). It contained some unusual and very thorough warnings about the risks facing its AI infrastructure business, and here's why I think they give investors enough reason to avoid its stock.
Source
Originally published at www.fool.com.