Oracle shares plummet dragging down AI stocks Nvidia, Coreweave

Seer Shares fell 11% in premarket trading Thursday, extending yesterday’s losses after the firm reported disappointing results.

The cloud computing and database software maker reported lower-than-expected quarterly revenue on Wednesday despite rising demand for artificial intelligence infrastructure. Its revenue was $16.06 billion, compared to the $16.21 billion analysts expected, according to data compiled by LSEG.

It dragged other names related to artificial intelligence with it. chip darling Nvidia In last premarket trading, the memory and storage firm was down 1.5% Micron was 1.4% lower, tech heavyweight Microsoft down 0.9%, cloud company core weaving fell 3% and AMD It was in the negative zone at 1.3%.

Oracle has been the subject of much market buzz since it raised $18 billion in a massive bond sale in September, making it one of the largest debt issuances on record for the tech industry. The name came to the agenda of investors Signed a $300 billion deal In the same month as OpenAI. Oracle has made further moves in cloud infrastructure, where it is battling Big Tech names like Amazon, Microsoft and Google for AI contracts.

Global investors are questioning Oracle’s aggressive AI infrastructure building plans and whether it needs such large amounts of debt, but other tech firms have also issued corporate bonds recently.

Oracle specifically provided billions of dollars in construction loans through a consortium of banks affiliated with data centers in New Mexico and Wisconsin. The firm will raise about $20 billion to $30 billion in debt each year for the next three years, Citi analyst Tyler Radke estimates.

The share price is up 34% year-to-date despite recent losses.