By Seema Mody
Publication Date: 2025-11-13 19:27:00
Oracle CEO Clay Magouyrk speaks at a question and answer session following a tour of the OpenAI data center in Abilene, Texas, USA, on September 23, 2025.
Shelby Tauber | Reuters
Two months ago, oracle The stock had its best day since 1992, Increase of 36% to a record after the company stunned investors with its forecast for cloud infrastructure revenue.
Since then, the company has lost a third of its value, more than wiping out those gains. In mid-November, the stock is facing its worst month since 2011.
The hype was sparked by Oracle’s stronger commitment to OpenAI. But sentiment has turned recently, with investors wondering whether the AI market has grown too far, too fast, and whether OpenAI can meet its $300 billion commitment to Oracle over five years.
“AI sentiment is waning,” Jackson Ader, an analyst at KeyBanc Capital Markets, said in an interview.
Ader said that of the major cloud companies in the GPU business, Oracle is expected to generate the least free cash flow. To finance the investments…
