AI chip stocks took a hit in after-hours trading on Wednesday after Oracle (ORCL) delivered a disappointing Q2 earnings report. Shares of Nvidia (NVDA) fell 1.4%, Broadcom (AVGO) dropped 0.8%, and Advanced Micro Devices (AMD) declined 1.07% after Oracle’s weak revenue report and higher expense guidance raised concerns about slowing enterprise AI spending. Meanwhile, Oracle (ORCL) plunged over 11% in after-hours trading.
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For Q2 FY26, Oracle reported earnings per share of $2.26, easily beating the $1.64 analysts expected. However, revenues of $16.1 billion fell just short of the $16.2 billion Wall Street was looking for. Additionally, Oracle’s forecast for third-quarter revenue growth came in at 16% to 18%, falling short of analysts’ expectations for 19.4% growth.
Oracle’s 11% Sell-Off Sparks AI Stock Pullback
More than Q2 numbers, Oracle’s weaker outlook and sharply higher spending plans raised new worries about the AI bubble. Oracle’s rising expense outlook intensified concerns about its growing debt load to support its AI infrastructure push.
This uncertainty spilled over into the broader AI sector, pressuring stocks like Nvidia, Broadcom, and AMD as investors reassessed near-term demand for AI infrastructure. Analysts are also questioning how quickly these companies can turn their heavy investments into meaningful revenue, especially as competition in the AI market continues to heat up.
What Lies Ahead for Investors?
With AI demand expected to drive the next major phase of tech growth, Oracle’s cautious tone raised concerns for investors.
Looking ahead, investors should brace for continued volatility in AI-related stocks as the market reassesses demand following Oracle’s weak outlook. While long-term AI fundamentals remain strong, near-term sentiment may stay shaky until companies show clearer profit visibility from their AI investments.
Which Is the AI Best Chip Stock, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared leading AI chip stocks to see which one offers the highest upside potential based on Wall Street analyst forecasts.
Investors can dig deeper to decide which AI chip stock best fits their strategy. Below is a screenshot for reference.
