Are Oracle’s earnings a sign of trouble ahead for artificial intelligence (AI) stocks? | The colorful fool

Are Oracle’s earnings a sign of trouble ahead for artificial intelligence (AI) stocks? | The colorful fool

By David Jagielski, CPA
Publication Date: 2025-12-18 13:45:00

Oracle’s rising capital spending and mounting debt appear to have spooked tech investors.

Artificial intelligence (AI) stocks have delivered fantastic results for investors in recent years. Since the beginning of 2023 the Global X Artificial Intelligence and Technology ETF has increased by around 150%. During this route the… S&P 500 has risen at a more modest rate of 78% (returns as of December 15).

However, when stocks rise so quickly in a relatively short period of time, there are bound to be concerns about valuations and whether stocks have become too expensive. Many analysts and investors are also worried about a possible one Bubble in the marketswith the possibility of a massive sell-off not unlike this Tech stocks suffered in 2022.

A leading technology company, oracle (ORCL 5.40%)recently released earnings that seem to have caused some shockwaves throughout the AI ​​world. Investors were surprised by the recent results and could pose a problem for AI stocks as…