OpenAI Helped Grow This Tech Giant’s Stock Before Tanking It

BY MARC CHAIKIN, FOUNDER, CHAIKIN ANALYTICS

A few months ago, tech giant Oracle (ORCL) shocked the markets with an unprecedented deal…

Back in September, news emerged that ChatGPT maker OpenAI pledged to spend $300 billion renting Oracle’s servers to train its AI models.

But there’s a slight issue. These servers will be housed in data centers that don’t exist just yet.

Of course, part of the deal was for Oracle to build these data centers as well. Oracle would have to build five massive data centers with millions of chips to stay good on its promise.

It’s no secret that Oracle’s stock was struggling during the early months of 2025…

But around the middle of the year, it started taking off as the AI narrative ramped up. And by mid-June, the stock moved into "bullish" territory in the Power Gauge.

When news of the OpenAI deal emerged in September, Oracle surged 36%… in a single day.

At this peak immediately after the announcement, Oracle’s stock had soared about 97% year to date.

That’s an incredible gain. Investors who sold at that peak would have walked away with a nice profit.

I hope many of them did. That’s because the alternative isn’t pretty, folks…

Oracle’s Stock Didn’t Take Long to Erase Its 36% Gains

By now, ORCL shares are down about 44% from the peak on Sept. 10. Take a look at this chart…

Sure, Oracle’s stock is still up about 11% since the beginning of this year. But that’s less than the S&P 500 Index’s roughly 16% gain over the same time frame.

You’ll also note in the chart that the Power Gauge hasn’t been “bullish” on Oracle since late October. Starting in mid-November, the stock slipped into “bearish” territory for about a month. Right now, it gets a “neutral” rating.

Looking ahead, I’m not holding my breath for a better rating…

On Dec. 10 after the market close, Oracle reported second-quarter earnings for its 2026 fiscal year. Despite an earnings-per-share (“EPS”) beat, investors weren’t impressed…

The stock fell by about 11% the next day. And it has continued falling since then.

Meanwhile, analysts are increasingly "bearish" on Oracle’s future. For example, Bank of America lowered its price target for the stock.

Broadcom (AVGO) saw a similar event…

On Dec. 11 after the market close, the semiconductor giant also reported an EPS beat. But its stock fell by more than 11% the next day.

As you’ve surely noticed, the AI narrative has been changing…

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Shifting AI Sentiment Could Hurt Your Portfolio

Investors are demanding to see better results to justify the massive spending on AI infrastructure.

Companies have spent a mind-boggling amount of money on AI in 2025.

And the debate over whether all this will ever be worth it for investors has intensified.

Simply put, I’m worried about my readers.

Sure, big-name stocks like Oracle have seen incredible growth. And it’s hard to forget the feelings of seeing an investment grow by 36% in one day.

But we simply can’t let our emotions cloud our judgment.

Investors need to know if a stock’s decline is temporary… or if it’s time to walk away from their favorite investments.

That’s why I went on camera Tuesday with Keith Kaplan to share a serious warning.

Like me, Keith has dedicated his entire career to timing big market shifts. And together, we shared the details on a never-before-seen tool that can help prepare you for a “tipping point” in the markets in 2026.

I urge you to tune in to the replay here and hear what we have to tell you. You’ll want to make sure you’re positioned properly for what’s likely to be a volatile ride ahead.

OpenAI Helped Grow This Tech Giant’s Stock Before Tanking It