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Oracle Faces Investor Concerns Amidst AI Infrastructure Investment and Lawsuit

DATA AND AI INFRASTRUCTURE

Oracle's stock has declined more than 28% since the beginning of the year, driven by concerns over the financial viability of its AI infrastructure project, Stargate, which involves partners like OpenAI and SoftBank. Reports of potential delays and internal conflicts have raised doubts among investors about the project's execution.

Additionally, a class-action lawsuit has been filed against Oracle's management for increasing capital expenditures without delivering corresponding revenue growth, thus heightening cash flow risks. Investor Michael Burry has highlighted Oracle as an example of tech companies financing their data centers aggressively, warning of a potential bubble in the AI sector.

The stock is currently priced at €119.86, significantly below its 200-day average of €191.69, reflecting negative market sentiment. Shareholders wishing to join the class-action suit must do so by April 6, 2026.

Oracle Faces Investor Concerns Amidst AI Infrastructure Investment and Lawsuit
Feb 24, 2026, 4:52 PM

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