"Though it certainly doesn't feel like it, Oracle ( NASDAQ:ORCL) shares finished 2025 with respectable, market-beating gains intact, up around 17%, topping the S&P 500 by close to a full percentage point. Undoubtedly, it was an eventful and turbulent year for the fast-rising AI data center play, which won the hearts of investors through the summer, only to break them in the fall that followed."
"For Oracle, which has shown signs of slowed negative momentum in recent weeks, I do think the cathartic 45% drop should have new investors feeling a bit better about the path forward, even though numerous uncertainties remain, especially regarding OpenAI and the cap-raising it'll need to do to pay Oracle for its services in the coming years. Had OpenAI been publicly traded, I'm sure the chart might have a good shot of resembling that of Oracle's,"
Oracle produced roughly 17% share gains in 2025, modestly outpacing the S&P 500 despite a volatile year. The stock rallied through the summer as investors embraced AI data-center opportunities, then experienced a cathartic 45% drop in the fall. Sentiment around AI spending shifted sharply, with indebted customers reducing commitments and the overall AI trade cooling late in the year. Oracle enters 2026 under pressure with slowed negative momentum and persistent uncertainties, particularly around the capital-raising OpenAI may require to pay for Oracle's services. Increased selectiveness and continued volatility among AI-related stocks are likely near-term themes.
Read at 24/7 Wall St.
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