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Oracle’s Slip Shakes AI Stocks — But the Bulls Aren’t Leaving
2 min read Oracle’s stock plunged 16.5% after warning its AI capex will jump by $15B, shaking the red-hot AI trade. Broadcom also signaled margin pressure from rising AI revenue. Some investors warn of dot-com-style overvaluation, but most remain bullish, saying AI fundamentals are still strong despite the volatility. December 12, 2025 17:30
The AI trade just hit a speed bump. Oracle dropped 16.5% after warning that its AI-driven capex is ballooning by $15B more than expected for 2026 — a jolt to investors already whispering about “AI bubble” territory. Broadcom piled on later, cautioning that higher AI revenue will compress margins, dragging its stock in after-hours trading.
But here’s the twist:
The AI bulls aren’t backing down.
Despite the bruising, major investors say the long-term AI story is still intact. Even the loud bearish voices — like Michael Burry, who’s calling this era dot-com déjà vu — haven’t sparked major short-selling against the biggest AI names. Most pessimism is targeting smaller, more speculative plays.
The real signal?
Market nerves are less about AI demand slowing and more about the cost of chasing it. When companies like Oracle overshoot their capex runway, it reminds everyone that the AI gold rush burns cash before it prints returns.
Where this goes:
Expect more volatility as capex-heavy giants ramp up spending. But until we see cracks in AI adoption itself, the market’s default stance remains: nervous optimism.
AI Agents