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Oracle's AI Momentum Hits The Brakes After OpenAI Deal Concerns Surface

MarketDash Editorial Team
10 hours ago
Oracle shares have tumbled over 45% from their recent peak as questions swirl around delays in OpenAI's massive data center buildout, dragging the stock's momentum scores down with it.

Remember when Oracle Corp. (ORCL) was riding high on that massive OpenAI deal? Those days feel like ancient history now. The tech giant's shares have been in freefall, dropping over 45% from their peak just three months ago, and the stock's momentum indicators are telling an increasingly ugly story.

Oracle recently inked a multi-billion-dollar, multi-year partnership with OpenAI to build out AI data centers. It was supposed to be the deal that positioned Oracle at the center of the artificial intelligence revolution. Instead, the stock has become a cautionary tale about what happens when execution concerns start creeping into a hype-driven narrative.

The Momentum Collapse

Here's where things get technical but important. Momentum scores measure a stock's strength relative to the entire market, calculated using price movements and volatility across different time periods. Think of it as a way to quantify whether a stock is winning or losing the race against its peers.

Oracle's momentum score has cratered from 74.62 to 32.05 within just one week. That's not a gentle decline—that's a collapse. The stock fell 15% over five trading days alone, reflecting serious investor concern about what's actually happening behind the scenes.

The OpenAI Problem

So what's driving this selloff? Growing doubts about whether OpenAI can actually deliver on its ambitious data center buildout. Reports are emerging of delays tied to labor and material shortages, pushing some facilities from a 2027 launch to 2028 or later. That might sound like a minor timeline shift, but in the fast-moving AI space, a year matters.

For Oracle, these delays create a painful squeeze. The company is sitting on a staggering $523 billion order backlog that it now faces complications in converting to actual revenue. Meanwhile, capital expenditures keep climbing as Oracle invests in infrastructure for deals that may take longer to materialize than expected.

The stock's technical picture looks rough across the board, with unfavorable price trends in the short, medium, and long term. When your momentum score drops that dramatically and your revenue realization timeline extends, you've got a problem that goes beyond normal market volatility.

Oracle bet big on the AI infrastructure boom, but execution is everything—and right now, the execution story is getting increasingly complicated.

Back to News

Oracle's AI Momentum Hits The Brakes After OpenAI Deal Concerns Surface

MarketDash Editorial Team
10 hours ago
Oracle shares have tumbled over 45% from their recent peak as questions swirl around delays in OpenAI's massive data center buildout, dragging the stock's momentum scores down with it.

Remember when Oracle Corp. (ORCL) was riding high on that massive OpenAI deal? Those days feel like ancient history now. The tech giant's shares have been in freefall, dropping over 45% from their peak just three months ago, and the stock's momentum indicators are telling an increasingly ugly story.

Oracle recently inked a multi-billion-dollar, multi-year partnership with OpenAI to build out AI data centers. It was supposed to be the deal that positioned Oracle at the center of the artificial intelligence revolution. Instead, the stock has become a cautionary tale about what happens when execution concerns start creeping into a hype-driven narrative.

The Momentum Collapse

Here's where things get technical but important. Momentum scores measure a stock's strength relative to the entire market, calculated using price movements and volatility across different time periods. Think of it as a way to quantify whether a stock is winning or losing the race against its peers.

Oracle's momentum score has cratered from 74.62 to 32.05 within just one week. That's not a gentle decline—that's a collapse. The stock fell 15% over five trading days alone, reflecting serious investor concern about what's actually happening behind the scenes.

The OpenAI Problem

So what's driving this selloff? Growing doubts about whether OpenAI can actually deliver on its ambitious data center buildout. Reports are emerging of delays tied to labor and material shortages, pushing some facilities from a 2027 launch to 2028 or later. That might sound like a minor timeline shift, but in the fast-moving AI space, a year matters.

For Oracle, these delays create a painful squeeze. The company is sitting on a staggering $523 billion order backlog that it now faces complications in converting to actual revenue. Meanwhile, capital expenditures keep climbing as Oracle invests in infrastructure for deals that may take longer to materialize than expected.

The stock's technical picture looks rough across the board, with unfavorable price trends in the short, medium, and long term. When your momentum score drops that dramatically and your revenue realization timeline extends, you've got a problem that goes beyond normal market volatility.

Oracle bet big on the AI infrastructure boom, but execution is everything—and right now, the execution story is getting increasingly complicated.