Oracle Falls 4% as Bond Selloff Hits Debt-Funded AI Buildout

This week's bond selloff is repricing the cost of building AI infrastructure, and the impact is uneven. Oracle, which raised $43 billion in debt to cover a $23.7 billion cash shortfall from $55.7 billion in capex, carries a relatively high leveraged balance sheet. That leverage amplifies the effect of rising rates, pushing its stock down harder than the broader cloud group, as seen in the SKYY ETF's 2% drop versus QQQ's 0.9% decline.

Nebius, another AI builder financing through debt and equity, slipped 3% in sympathy, but Oracle's slide is also part of a longer trend, with shares down 23% year to date. The company's stock now trades below its 200-day moving average of $170.66, a sign that investors are repricing the risk of a debt-funded buildout in a higher-rate environment. The move underscores how sensitive AI infrastructure investments are to borrowing costs, even as they remain a central focus of tech spending.