Oracle's $80 Billion Wipeout Sparks AI Bubble Fears

Oracle's stock price plunged 15% on Thursday. This erased about $80 billion from the company's total market value. The drop followed the release of the tech giant's latest quarterly results. The numbers showed two worrying signs: a slowdown in revenue growth and a sharp rise in spending. Oracle, a major business software company, saw its total value fall from $630 billion to $550 billion. The company was co-founded by Larry Ellison, a known ally of former U.S. President Donald Trump. This dramatic loss has increased concerns about a potential bubble in artificial intelligence (AI) stocks. Many investors see these stocks as overvalued. The fear spread to other companies linked to the AI boom. Shares of chipmaker Nvidia, a key indicator for the AI sector, also fell after Oracle's results were made public.