Oracle shares slide after weak outlook and soaring AI-related capex, fueling ‘AI bubble’ concerns

Oracle shares fell sharply after the company issued a dour forecast while highlighting significantly higher spending plans, intensifying investor scrutiny of whether AI infrastructure bets will pay off soon enough. Reuters described the move as sparking broader pressure on AI-linked equities, reflecting market sensitivity to capex-driven business models and uncertain near-term returns. Oracle’s positioning as a major cloud and infrastructure partner for large-scale AI deployments has tied its narrative closely to AI demand and the pace of monetization. The episode underscores a key industry tension: AI-driven growth is pushing unprecedented datacenter investment, but public markets are increasingly demanding clearer profit timelines and cash-flow discipline.