Oracle Stock Slumps 37% as AI Capex Rises, Ormat Draws Institutional Buyers

Oracle's shares have fallen about 37% year‑to‑date after the company announced plans to spend up to $70 billion on artificial‑intelligence data‑center infrastructure through fiscal 2027. Management said it will fund $40 billion of the spending with new debt and equity, including a $20 billion share sale, raising concerns among investors about rising leverage and near‑term margin pressure as the firm shifts from higher‑margin software to capital‑intensive AI services.

Ormat Technologies saw a boost in institutional ownership during the first quarter, with Principal Financial Group increasing its stake by 71.2% to 225,372 shares, representing roughly 0.37% of the company and worth about $25.2 million. Other investors, including Dimensional Fund Advisors, Geode Capital Management, the Canada Pension Plan Investment Board, Migdal Insurance, and Norges Bank, also expanded their positions, bringing total institutional ownership to 95.49% of Ormat’s stock.