Having reached an all-time peak on September 10 this year, Oracle's stock price has since embarked on a downward trajectory. A series of adverse events this month have only intensified worries about the future of the AI industry and the potential for valuation bubbles. On December 17 (local time), Oracle's shares concluded the trading day with a 5.41% decline, settling at $178.45 each, marking a nearly 50% drop from their September apex.

This precipitous fall was largely attributed to earnings news that the market had not fully factored in, along with growing uncertainties regarding data center funding. Foreign media outlets have reported that Oracle's primary data center collaborator, Blue Owl Capital, has opted to cease financial backing for Oracle's $10 billion data center initiative in Michigan. This move has cast significant doubt on the financial stability underpinning Oracle's ambitious AI infrastructure projects. Despite Oracle's swift denial of these claims, sources mentioned in the reports asserted that negotiations had hit a deadlock.

From a performance standpoint, following the close of the market on December 10, Oracle unveiled its second-quarter financial results for fiscal year 2026. The company reported revenue of $16.06 billion, marking a 14% year-on-year increase, albeit falling short of market projections. Net profit soared to $6.14 billion, reflecting a substantial 95% year-on-year surge. Non-GAAP adjusted earnings per share stood at $2.26, surpassing market expectations.

Regarding capital outlays, the preceding quarter witnessed capital expenditures reaching $12 billion. Oracle anticipates full-year capital expenditures for fiscal year 2026 to hover around $50 billion, a notable escalation from the $35 billion forecasted at the conclusion of the first quarter.

Furthermore, Oracle's escalating debt levels and the potential hazards tied to decelerating growth have amplified investor apprehensions. Several globally recognized institutions have revised their target prices for Oracle downward, with analysts voicing widespread concerns over the company's short-term challenges.