Oracle (ORCL) fell more than 5% on Friday after Bloomberg reported that the company has pushed back the completion of several data centers it is building for OpenAI (PC:OPAIQ), pushing timelines back to 2028 from the original 2027 targets. The news sparked concerns about the rising challenges of building massive facilities needed to support the advanced AI models. However, Oracle countered these worries, saying there are “no delays to any sites required to meet our contractual commitments, all milestones remain on track.”
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Oracle has been racing to meet the demands of a $300 billion contract signed this summer to provide the computing infrastructure required to train and run OpenAI’s models. According to the report, the delays are largely tied to labor and material shortages, issues that have increasingly weighed on large-scale data‑center construction across the U.S.
Bloomberg also noted that the first facility in Abilene, Texas, remains on schedule, with more than 96,000 Nvidia (NVDA) chips already delivered. However, other locations are expected to face delays.
Importantly, the delays come as Oracle’s massive AI infrastructure build‑out has become a closely watched indicator of the broader AI investment cycle. Some analysts warn that the heavy spending could signal the sector is overheating.
Is Oracle a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 21 Buys, 11 Holds, and one Sell assigned in the past three months. Further, the average Oracle price target of $302.10 per share implies 56.98% upside potential.
