Oracle's Value Halved from 2025 Peak, AI Caution Grows
Oracle's market value has declined by nearly half since its peak in 2025. Analysts point to the company's position in the AI race and increasing caution over high expenditures as the primary reasons behind this decline.
Technology giant Oracle's market value experienced a sharp decline after reaching a historic peak in 2025. The company's value fell by approximately half from its level at that time, indicating that investors have adopted a more cautious approach regarding high expectations and spending in the field of artificial intelligence.
Analysts Point to AI Strategy
Financial analysts note that several key factors are behind the loss in value. Foremost among these are questions about Oracle's competitive position in AI infrastructure and cloud services. Aggressive investments in this area by rivals like Microsoft and other major players are creating pressure for Oracle. Similarly, it was previously reported that Microsoft's AI spending was unsettling investors.
Investor Sentiment and Sectoral Trend
Recently, the impact of technology companies' AI investments on profitability is being monitored more closely by investors. Models like Meta's strategy of financing AI investments with its growing advertising business are attracting more interest from a sustainability perspective. On the other hand, Tesla's focus on AI while canceling models amid a revenue decline also serves as an example of strategic shifts in the sector.
Oracle's situation once again demonstrates that the AI race is not only a technological struggle but also requires financial discipline and investor confidence. Whether the company can present a roadmap that balances AI and cloud growth with profitability will be closely watched in the coming period. This process, parallel to massive funding pursuits by companies like OpenAI, is also shaping the sector's financing and valuation dynamics.
