Oracle’s AI Spending Spree Sends AICoin and AI-Linked Cryptos Tumbling
Oracle Corp. shares plunged 14% on Thursday after the company revealed aggressive AI infrastructure investments that overshadowed its fiscal Q2 earnings. The cloud giant's $12 billion in quarterly capital expenditures—tripling last year's outlay—spooked investors already wary of AI bubble risks. While revenue climbed 14% to $16.06 billion, it narrowly missed analyst estimates of $16.21 billion.
The sell-off spilled over into adjacent markets. AI-linked cryptocurrencies, including several prominent AICoin projects, sank by up to 7%. Traders interpreted Oracle's revised $50 billion annual capex guidance as a major warning signal. 'This confirms fears about unsustainable AI hype,' an anonymous fund manager stated. 'When a bellwether like Oracle starts hemorrhaging cash, the entire speculative complex trembles.'
Semiconductor stocks like Nvidia and AMD saw sympathetic declines, though their reaction was less severe than the crypto market's. Market observers are now watching closely to see if Oracle's stumble foreshadows a broader AI sector correction or is merely a reflection of company-specific execution risks.