"The drop has already started if you think of Oracle Corp. ( NYSE: ORCL) as the proverbial canary in the coal mine. Wall Street did not like what it saw as a significant bet on AI and a concentration of Oracle's business in one small AI room. The stock has declined by 30% over the past month. Founder Larry Ellison says he will bet hundreds of billions of dollars on chips and data centers."
"It sold its entire investment in Nvidia Corp. ( NASDAQ: NVDA) to fund its foray into other AI ventures. Its stock recently dropped 9% in a day. SoftBank is as deeply entrenched in the AI industry as any other company. It has led to the creation of $500 billion in AI infrastructure. SoftBank CEO Masayoshi Son stood directly next to President Trump when he announced Stargate, a massive bet on future data center buildouts."
Several investors are positioning to profit from a potential AI market implosion by shorting heavily exposed companies. Paul Kedrosky characterized the AI bubble as "every bubble from the past rolled into one." Oracle's stock fell about 30% amid concerns over a concentrated AI bet, heavy borrowing, and reliance on OpenAI, while Larry Ellison pledged massive spending on chips and data centers. Financial Times noted Oracle's vast borrowing to fund the AI pivot unnerved Wall Street. SoftBank sold its Nvidia stake, saw a sharp share drop, and has committed to extensive AI infrastructure and Stargate data-center projects, raising investor questions about funding obligations.
Read at 24/7 Wall St.
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