Oracle Corp. (ORCL) Sheds 5.9% as AI Bubble Fears Linger

We recently published 10 Stocks With Massive Losses; AI Firms Not Spared. Oracle Corp. (NYSE:ORCL) is one of the worst performers on Friday.

Oracle Corp. saw its share prices decline by 5.9 percent on Friday to end at $226.13 apiece as investors sold off positions in Artificial Intelligence stocks amid warnings of an AI bubble.

This came after OpenAI CEO Sam Altman cautioned earlier this month that the AI industry could be entering a bubble, given the unsustainable heavy investments in the sector.

His comments triggered a broader investor pessimism, as investors feared that it could be a repeat of the Internet bubble in the 1990s, where companies soared to peak levels due to speculative investing and the rapid internet growth, then crashed steeply after failing to sustain growth and profits.

An AI bubble poses significant implications to companies linked to AI, and Oracle Corp. (NYSE:ORCL) is especially exposed to such risks. If returns on AI investments fail to materialize, demand for cloud services and high-performance computing could also decline and lead to underutilized AI infrastructures.

While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.