Down 21% This Year: Is Oracle the Most Undervalued AI Stock on the Market? | The colorful fool

To say the least, 2026 has not been a good year for Big Software so far. Even the giants of the industry suffered heavy losses in their share prices. A glaring example of this is oracle‘S (ORCL 3.93%) almost 21% decline since the beginning of the year.

The crash is largely due to investor fears Technology company Companies that identify with legacy solutions – such as Oracle with its databases – are being hit by a major wave of disruption Artificial Intelligence (AI) Models that can do their jobs better, cheaper and faster. But Oracle is actually switching to an AI-heavy business model. So is the selloff the best bargain AI stock today?

Oracle of the future

Oracle’s big risk is that it can transform from its traditional core business of database and software-as-a-service (SaaS) solutions into a giant AI infrastructure hyperscaler (i.e. operator of large data centers). In short, it should be a major subject – if not The Major – Landlord in the AI ​​Revolution.