"Shares of Oracle ( NYSE:ORCL) have been looking up in recent weeks, thanks in part to the TikTok deal as well as an exhaustion in pessimism surrounding Oracle, its debt load, and its OpenAI exposure. In any case, the selling pressure was overdone, and the latest bounce, I think, might have legs as investors warm up to the premier AI infrastructure plays again."
"Undoubtedly, given the hundreds of billions that OpenAI will need to be good for as Oracle floors it on AI data centers, every piece of good news for OpenAI is bound to be good news for shares of Oracle. Undoubtedly, 2026 could be a big year that sees Sam Altman's AI titan raise big money, either through private capital raises or a big IPO. Of course, more clarity on the path to profitability might also bode well for the firm's ability to pay its bills."
Oracle shares have rebounded recently after a steep 45% peak-to-trough sell-off, aided by the TikTok deal and waning investor pessimism about its debt and OpenAI exposure. The company still carries a heavy debt load and remains dependent on OpenAI for AI data-center revenue, but Oracle trades at a low price point that invites optimism. Investor confidence could rise if OpenAI demonstrates ability to raise large funds or a profitable path, potentially via a 2026 capital raise or IPO. OpenAI's moves into healthcare, launch of OpenAI Health, and acquisition of Torch suggest monetization runway.
Read at 24/7 Wall St.
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