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In recent months, broad U.S. software and cloud stocks have tumbled as investors step back from last year’s AI euphoria. According to Barchart data reports, the software sector has fallen roughly 24% behind the S&P 500 ($SPX) over the past three months, with Oracle (ORCL) the “loss leader,” off nearly 50% since late October. That slide reflected concerns about massive cloud capital spending and OpenAI’s uncertain funding.
But on Feb. 9, Oracle suddenly jumped 10% after D.A. Davidson upgraded the stock. Analyst Gil Luria argued that a “revamped OpenAI” will renew demand for Oracle’s cloud services and that new OpenAI funding should finally allow it to honor its commitments to Oracle’s massive AI data centers.
