Oracle CEO Clay Magouyrk speaks at a Q&A following a tour of the OpenAI data center in Abilene, Texas, U.S., Sept. 23, 2025.
Two months ago, Oracle's stock had its best day since 1992, soaring 36% to a record after the company blew away investors with its forecast for cloud infrastructure revenue.
Since then, the company has lost one-third of its value, more than wiping out those gains. Midway through November, the stock is on pace for its worst month since 2011.
The hype was sparked by Oracle's strengthening ties to OpenAI. But the mood of late has turned, with investors questioning whether the AI market ran too far, too fast and whether OpenAI can live up to its $300 billion commitment to Oracle over five years.
"AI sentiment is waning," said Jackson Ader, an analyst at KeyBanc Capital Markets, in an interview.
Ader said that of the big cloud companies in the GPU business, Oracle is expected to generate the least amount of free cash flow. To fund the capex required for Oracle's business, Ader expects Oracle to turn to more creative financing tools.
Oracle is looking to raise $38 billion in debt sales to help fund its AI buildout, according to sources with knowledge of the matter who asked not to be named because the information is confidential. Bloomberg reported on the planned debt raise last month.