Oracle’s AI Growth Targets Spark Investor Skepticism Amid Broad Market Gains
Oracle shares plummeted 7% as investors rejected its ambitious AI revenue targets, despite a broader market rally. The tech giant's projection of $225 billion in total revenue by 2030—including $166 billion from cloud infrastructure—was met with skepticism after initial enthusiasm faded.
While Oracle bled, major indices climbed. The Dow rose 345 points (0.8%), with the S&P 500 and Nasdaq both gaining 0.7%. Market sentiment improved after Treasury Secretary Scott Bessent announced upcoming talks with Chinese officials and President TRUMP reaffirmed plans for a Xi Jinping meeting.
The divergence highlights growing scrutiny of AI HYPE cycles. Oracle's Thursday pop (3.1%) evaporated when traders questioned the feasibility of sustaining 31% annual growth—a cautionary tale for tech valuations in an era of aggressive AI claims.