Oracle Corporation (ORCL) shares declined 4.47% after a Bloomberg report indicated that some data centers associated with OpenAI (PC:OPAIQ) may be completed in 2028 rather than 2027.
However, Oracle later denied the report and said all project goals tied to contracts remain on schedule.
Still, the stock stayed lower, as traders focused on what delays could mean rather than the denial itself.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
At the same time, the report pointed to labor and supply limits as the cause of the possible delay.
Even so, the concern was not new, as Oracle has already faced doubts about how fast it can build at scale.
Therefore, the reaction reflected worry about timing rather than demand for cloud services.
Why the Market Reacted Across AI Stocks
Oracle has built a very large cloud backlog, which signals strong demand ahead.
However, turning that backlog into revenue depends on the availability of finished and active data centers. Consequently, any sign of slower build times raises concern about near-term sales growth.
In addition, Oracle has raised its capital spending plan by $15 billion this year. That increase came alongside higher cash use and weaker-than-expected cloud sales last quarter. Therefore, investors are watching closely to see when spending begins to pay off.
Meanwhile, the report also hit other companies tied to data center growth. Nvidia Corporation (NVDA) and Advanced Micro Devices (AMD) both moved lower on the day. Likewise, firms tied to servers, power, and networks also fell in response to the news. In summary, the issue was not a lack of demand for AI. Instead, the market response reflected concern about how fast new capacity can come online.
Is Oracle a Good Stock to Buy?
Oracle earns a Moderate Buy consensus from the Street’s analysts, based on 35 ratings. The average ORCL stock price target is $298.43, implying a 57.09% upside from the current price.
