Why Did Oracle Stock Drop Today?

Why Did Oracle Stock Drop Today? Rich Smith, The Motley Fool Fri, June 5, 2026 at 7:41 PM GMT+2 2 min read ORCL AVGO NVDA INTC Oracle (NYSE: ORCL) stock tumbled today -- along with the rest of the stock market -- falling 8. 7% through 1 p.

m. ET Friday, and it's no huge mystery why. Specialty chip-maker Broadcom (NASDAQ: AVGO) reported earnings on Wednesday and, while the news was good -- beats on both sales and earnings, and a forecast for 89% sales growth in Q3 -- investors spooked once they realized Broadcom's sales forecast implied sales of its artificial intelligence chips will only triple in Q3, and not grow even faster, as analysts hoped.

Will AI create the world's first trillionaire?  Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.   Continue » Broadcom sold off on the news yesterday , and today the panic seems to be spreading among other tech stocks.

Image source: The Motley Fool. What Broadcom's earnings mean for Oracle Oracle has tied its future to the AI revolution, making a big bet on providing data center access to AI firms such as OpenAI , which could account for the bulk of Oracle's revenue in future years. It makes sense, therefore, that investors nervous about the future of AI would take out their wrath on Oracle stock today.

And yet, not everyone is down on Oracle. Guggenheim still loves Oracle This morning, before all the selling started, analyst John DiFucci at investment bank Guggenheim doubled down on his "buy" rating and a $400 price target on $215 Oracle stock. Why does DiFucci think Oracle stock could double?

OpenAI's ability to raise $120 billion in its recent funding round, and Oracle's ability to raise $45 billion or more in debt and equity placements, "should help assuage investor concerns around the data center build-out," says DiFucci, who believes Oracle is the best play on AI today. Even if he's right, though, there's a lot of risk ahead as Oracle invests upwards of $160 billion in capital spending over the next two years. Caveat investor.

Should you buy stock in Oracle right now? Before you buy stock in   Oracle , consider this: The Motley Fool   Stock Advisor   analyst team just identified what they believe are the   10 best stocks   for investors to buy now… and   Oracle   wasn’t one of them.  The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when   Netflix   made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,   you’d have $439,847 ! *  Or when  Nvidia   made this list on April 15, 2005...

if you invested $1,000 at the time of our recommendation,   you’d have $1,342,065 ! * That performance is why people listen. With a track record of   beating the S&P 500 by nearly 5x ,   Stock Advisor   offers a distinct advantage.

Don't miss the latest top 10 list, available with   Stock Advisor , and join an investing community built for the long haul. Story Continues See the 10 stocks » *Stock Advisor returns as of June 5, 2026. Rich Smith has no position in any of the stocks mentioned.

The Motley Fool has positions in and recommends Broadcom and Oracle. The Motley Fool has a disclosure policy . Why Did Oracle Stock Drop Today?