Oracle’s Debt Woes Trigger Tech Sector Sell-Off as Blue Owl Exits $10B Data Center Deal
Oracle shares plunged 5.4% Wednesday after Blue Owl Capital abandoned a $10 billion data center partnership, citing unfavorable debt terms. The cloud computing giant has now lost nearly half its value since September's peak as investors grow increasingly wary of its Leveraged position.
The collapse of this high-profile infrastructure deal sent ripples through tech markets. Semiconductor stocks including Broadcom, Nvidia and AMD all declined as the Nasdaq Composite dropped 1.81%. Concerns persist about potential delays in Oracle's data center commitments to AI leader OpenAI.
Market observers note the sell-off reflects broader anxiety about capital-intensive tech projects in a high-interest rate environment. Oracle's predicament serves as a cautionary tale for growth-dependent firms carrying significant debt loads.
