A view of Oracle headquarters on September 11, 2023 in Redwood Shores, California.
Justin Sullivan | Getty Images
The apprehension investors have surrounding Oracle has spilled over from manifesting in its stock price — which has fallen nearly 50% from its all-time high on Sept. 10 — to affecting its projects.
Asset management firm Blue Owl Capital reportedly pulled out from Oracle’s $10 billion data center project over unfavorable debt terms, according to the Financial Times, as concerns about the tech giant’s high level of debt mount.
The latest development adds fuel to worries that Oracle could delay the completion of data centers for OpenAI, which were first flagged by Bloomberg on Friday, though the cloud company has denied the report.
Shares of Oracle fell 5.4% Wednesday, putting its month-to-date losses more than 11%. They weighed down related names, such as Broadcom Nvidia and Advanced Micro Devices.
As a result, major U.S. indexes fell. The S&P 500 retreated 1.16% and the Dow Jones Industrial Average dropped 0.47%, while the Nasdaq Composite lost 1.81% in its worst day in nearly a month.
Despite the recent pullback in artificial intelligence stocks, the Bank of America thinks “the AI trade may still have room to run into 2026” — with the important caveat that shares going up does not mean a bubble isn’t forming.
“In our view, such progression validates our thesis that a larger AI bubble continues to build,” analysts at Bank of America wrote.
The trouble, as always, is pinpointing the exact moment before the bubble pops — if that’s even possible.
— CNBC’s Jaures Yip contributed to this report.
What you need to know today
Major U.S. indexes fall on AI weakness. The S&P 500 and Dow Jones Industrial Average had their fourth consecutive losing session. Asia-Pacific markets mostly slid Thursday. Japan’s Softbank lost around 3.7%, paring earlier losses, with the Nikkei 225 trading in the red.
China’s chipmakers are challenging Nvidia. MetaX Integrated Circuits, a Chinese semiconductor firm, soared nearly 700% in its market debut on Wednesday. It’s a sign of how investors are growing enthusiastic over Chinese chipmakers and their progress in catching up with Nvidia.
Netflix deal is ‘superior’ to Paramount’s, Warner Bros. says. Samuel Di Piazza, chair of the Warner Bros. board, separately told CNBC on Wednesday that the board would have appreciated more involvement from Paramount Skydance CEO David Ellison’s father, Oracle co-founder Larry Ellison.
U.S. approves arms sale to Taiwan, reportedly the biggest ever. The $11.15 billion transaction, which was given the green light on Thursday, reportedly comprises HIMARS rocket artillery systems, self-propelled howitzer systems and Javelin and TOW anti-tank missiles, according to Reuters.
[PRO] One chart is worrying Michael Burry. “The Big Short” investor pointed to a graphic produced by Wells Fargo that showed a phenomenon in U.S. households that has only happened twice before and preceded bear markets that “lasted years.”
And finally…
People walk past a Starbucks Reserve in the Huangpu district in Shanghai on April 11, 2025.
Hector Retamal | Afp | Getty Images
Correction: An earlier version of this report stated the wrong date of the U.S. government’s approval of its arms sale to Taiwan. This has been rectified.
