OpenAI Spending Impacts Nvidia While AMD Intel Shares Decline

Oracle's recent earnings report significantly impacted the AI stock market, causing its shares to fall over 10% after missing quarterly expectations. The company announced a substantial increase in planned capital spending for fiscal 2026, now projected at $50 billion, up from $35 billion, and reported burning approximately $10 billion in the November quarter on AI data centers. This high expenditure, partly for customers like OpenAI, and rising debt levels have raised investor concerns about Oracle's ability to quickly monetize its AI investments, leading to a broader market downturn. The ripple effect of Oracle's news was felt across the tech sector. Major AI-related stocks, including Nvidia, AMD, Broadcom, Marvell Technology, Qualcomm, and Intel, all experienced declines. Tech giants like Microsoft, Meta, Google, and Amazon also saw their shares drop. Softbank Group shares fell sharply as well, partly due to its significant investment in OpenAI and its previous sale of NVIDIA holdings to support this venture. This market slump occurred despite the Federal Reserve's decision to lower interest rates by a quarter-point, with further cuts anticipated in 2026 and 2027. Meanwhile, other AI developments continue to unfold. Microsoft observed distinct user behaviors with its Copilot AI tool; desktop users primarily view it as a productivity aid, while mobile users engage with it more conversationally, especially late at night. SoundHound AI is making strides in the conversational AI market, targeting a $140 billion opportunity. The company reported a 68% year-over-year revenue increase in the third quarter and is expanding its Amelia AI platform beyond automotive and restaurants into the broader enterprise sector, with analysts expecting it to reach breakeven by 2027. Additionally, Citron Research views SentinelOne as undervalued, citing its transition to an AI-native data and security platform and its Purple AI integration, setting a $32 price target. AI-generated trading signals are also gaining traction, with Stock Traders Daily Canada releasing signals for Atrium Mortgage Investment Corporation and institutional AI models showing strong positive signals for Elbit Systems Ltd.

Key Takeaways

• Oracle's stock fell over 10% after missing quarterly earnings expectations and increasing its planned fiscal 2026 AI spending to $50 billion.
• Oracle spent approximately $10 billion in the November quarter on AI data centers, including for OpenAI, raising concerns about profitability and debt.
• The market downturn affected major AI stocks like Nvidia, AMD, Broadcom, Marvell Technology, Qualcomm, Intel, Microsoft, Meta, Google, and Amazon.
• Softbank Group shares dropped due to worries about Oracle's AI spending and its own substantial investment in OpenAI.
• Microsoft observed that desktop users view its Copilot AI as a productivity tool, while mobile users treat it as a conversational partner.
• SoundHound AI reported a 68% year-over-year revenue increase in Q3, targeting a $140 billion conversational AI market, with breakeven expected by 2027.
• Citron Research considers SentinelOne undervalued, setting a $32 price target, noting its AI-native platform and Purple AI integration.
• AI-generated trading signals were released for Atrium Mortgage Investment Corporation, suggesting specific buy/sell targets.
• Institutional AI models show strong positive trading signals for Elbit Systems Ltd., aiding systematic trading strategies.
• Oracle's AI spending concerns overshadowed the Federal Reserve's decision to lower interest rates by a quarter-point.

Oracle's weak earnings cause AI stock market drop

Oracle's recent earnings report disappointed investors, causing a drop in AI-related stocks like Nvidia, CoreWeave, Broadcom, Marvell Technology, and AMD on Wednesday. Oracle's shares fell by 10% after it reported lower-than-expected earnings and increased its planned spending for fiscal 2026 to $50 billion, up from $35 billion. This high expense outlook and rising debt levels have raised concerns about Oracle's ability to turn its AI investments into revenue. The company has major contracts to supply data center chips to AI startup OpenAI, but skepticism about OpenAI's future also affects sentiment.

Softbank shares fall on Oracle AI spending worries

Softbank Group shares dropped sharply on Thursday, leading losses in Japanese markets, after Oracle's mixed earnings report. Oracle's stock fell over 10% due to a weaker outlook and a significant increase in its planned capital spending for fiscal 2026 to $50 billion. These concerns about Oracle's AI spending and rising debt also affected Softbank, which is heavily invested in OpenAI. Softbank pledged to invest up to $40 billion in OpenAI and even sold its NVIDIA holdings to support this. Doubts are growing about how quickly Oracle and OpenAI can make their large AI investments profitable, especially with strong competition from companies like Google.

AI provides trading signals for Atrium Mortgage

Stock Traders Daily Canada released AI-generated trading signals for Atrium Mortgage Investment Corporation (AI:CA) on December 11. For long-term trading, the AI suggests buying near 11.22 with a target of 11.60 and a stop loss at 11.16. It also suggests shorting near 11.60 with a target of 11.22 and a stop loss at 11.66. The ratings for AI:CA are Neutral for near and mid terms, but Strong for the long term.

AI trading strategies boost Elbit Systems stock outlook

Recent institutional AI models show strong positive trading signals for Elbit Systems Ltd. (TASE:ESLT) in both the near and long term. These AI-driven analyses help investors see Elbit Systems as a candidate for more systematic trading. Elbit Systems is a defense contractor known for growing sales, good profits, and steady dividends, with a strong order book. While AI strategies mainly affect short-term trading, they could increase price changes around big news like deal announcements. Investors should know that the stock might be overextended by 45% despite its strong performance.

Microsoft stock dips as AI users get personal

Microsoft stock (NASDAQ:MSFT) saw a slight dip after the company observed different user behaviors with its AI tool, Copilot. Microsoft found that desktop users view Copilot as a productivity tool, while mobile users treat it more like a conversational partner, especially late at night when discussions become philosophical. The company analyzed 37.5 million conversations to understand these trends. Meanwhile, Xbox plans a big 2026, its 25th anniversary, with promises of new ways to play old games. Despite the stock dip, Wall Street analysts maintain a Strong Buy rating for Microsoft.

SoundHound AI aims for big growth in voice market

SoundHound AI (5.00%) is working to become a leader in conversational AI, targeting a $140 billion market. The company is growing its revenue rapidly, with a 68% increase year-over-year in the third quarter, by expanding beyond restaurants and automotive into the broader enterprise market. Its Amelia AI platform could boost subscription revenue and profitability. Although SoundHound AI currently has a significant net loss, Wall Street analysts expect it to reach breakeven by 2027. The company's large market and strong revenue growth suggest a substantial upside for its stock in the coming years.

Oracle earnings miss causes AI stock market drop

Oracle's stock led a premarket slide in AI-related shares on Thursday, falling over 11% after the company missed quarterly earnings expectations. This downturn affected other major AI stocks, including Nvidia, AMD, Broadcom, Qualcomm, and Intel, which all saw declines. Tech giants like Microsoft, Meta, Google, and Amazon also experienced drops. The broader market indexes, Nasdaq and S&P futures, also fell. This market slump happened despite the Federal Reserve's decision to lower interest rates by a quarter-point, with further cuts expected in 2026 and 2027.

Citron says SentinelOne stock is undervalued

Citron Research believes SentinelOne (S) stock remains undervalued, even after the company transitioned to an AI-native data and security platform. SentinelOne shares have dropped over 30% this year, but Citron set a $32 price target, citing strong third-quarter fiscal 2026 results and successful hacking investigations. The company's Purple AI offers advanced generative AI integration and better threat response, proving resilient during breaches. Emerging products in cloud, data, and AI now make up half of SentinelOne's new contracts, showing high returns and efficiency that suggest a stronger growth path than its current low valuation.

Oracle's AI spending worries hit European stocks

European software stocks opened lower on December 11 after Oracle's stock fell in late trading. Oracle reported a significant increase in spending on AI data centers and equipment, but these high costs are taking longer than expected to generate cloud revenue. This news rekindled fears about AI investments, overshadowing earlier positive market sentiment. The positive mood came from Fed Chair Jerome Powell's decision to cut interest rates by 25 basis points, despite some dissenting votes from other Fed policymakers.

Oracle burns $10 billion on AI data centers

Oracle's shares dropped over 6% in after-hours trading on Wednesday after the company announced it spent roughly $10 billion in the November quarter. This significant cash burn is due to Oracle's increased investments in data centers for its artificial intelligence customers, including OpenAI. This level of spending is new for Oracle, which has borrowed heavily, including an $18 billion bond, to fund these large AI infrastructure projects.

Sources

• Nvidia, AI stocks fall after Oracle earnings underwhelm By Investing.com
• Softbank shares slide as AI doubts swirl after Oracle earnings By Investing.com
• (AI) Technical Analysis and Trading Signals (AI:CA) - Stock Traders Daily Canada
• Are AI-Led Trading Strategies Quietly Reframing Elbit Systems’ (TASE:ESLT) Risk Profile?
• Getting Personal With AI: Microsoft Stock (NASDAQ:MSFT) Slips as Users Turn to AI in Strange Ways
• SoundHound AI: Where Will This Stock Be in 5 Years?
• Oracle Leads Premarket Slide In AI Stocks After Earnings Miss
• SentinelOne remains undervalued despite transition to AI-native security platform: Citron
• Oracle Rekindles AI Fears, Fed Cuts Amid Dessent | The Opening Trade 11/12
• Oracle Burned $10 Billion as AI Data Center Investments Rise