Oracle stock is still down year-to-date as many AI stocks are surging. Here’s what’s going on. | The colorful fool

The enthusiasm of the artificial intelligence (AI) market has given a boost to just about every name that has secured a credible place in the build. alphabet And Amazon have reached new all-time highs by accelerating their cloud division. AI chip manufacturer Nvidia is close to a market cap of $5 trillion and Broadcom And Intel joined the rally; Intel alone rose 114% in April.

And then there is something else oracle (ORCL +2.81%). Shares have recovered somewhat over the past week, up about 10%, but are still well below their 52-week high of over $345. And despite the stock’s recent rebound, as of this writing, it’s down more than 6% year to date.

That’s an unusual sight for a company that has more contracted future revenue than almost any competitor.

So what is there? A heavy debt load that finances a buildout is largely tied to one anchor customer – a stance that contrasts with the more diversified backlog that Amazon described in its recent earnings release.

A residue like nothing…