Nvidia and a range of artificial intelligence–linked stocks fell on Thursday after Oracle delivered underwhelming earnings and signaled sharply higher capital expenditures, reigniting worries that AI investment may be outpacing returns.

Nvidia (NASDAQ:NVDA) — which maintains sizable data center chip supply agreements with Oracle (NYSE:ORCL) — declined 1.3%. CoreWeave (NASDAQ:CRWV), another cloud competitor with ties to OpenAI, dropped more than 3%. Oracle, Nvidia, and CoreWeave all have existing relationships providing compute support to the AI startup.

Other chipmakers and AI server suppliers, including Broadcom Inc (NASDAQ:AVGO), Marvell Technology (NASDAQ:MRVL), and AMD (NASDAQ:AMD), also traded lower, slipping between 0.5% and 1%.

European semiconductor names such as Infineon, STMicroelectronics, ASML, and ASM trended slightly below flat in mid-morning trading.

Oracle’s stock tumbled more than 11% in U.S. premarket hours after the company issued revenue and earnings guidance for the current quarter that came in below expectations. Its remaining performance obligation — a closely watched bookings metric — registered $523 billion, a touch under consensus.

Executives also revealed that capital spending for fiscal 2026 is now expected to hit $50 billion, far above prior projections of $35 billion. The combination of softer guidance and a ballooning capex plan added to persistent concerns about Oracle’s growing leverage, as the company continues to take on substantial debt to fund its AI infrastructure expansion.

During the post-earnings call, CEO Clay Magouyrk faced questions on how Oracle plans to finance its aggressive data center buildout but did not disclose specifics.

“Cloud growth at the low-end of the guide with building pressure on gross margins and operating margins may further sap investor confidence in Oracle’s ability to execute efficiently against a large and growing book of GPU as a service business, leaving the shares lacking a clear catalyst,” analysts at Morgan Stanley said in a note.

Oracle has issued tens of billions of dollars in bonds in recent months to support its AI strategy, prompting heightened scrutiny of its credit risk. As of last week, the cost to insure Oracle’s debt against default reached its highest level since March 2009.

Although Oracle built its reputation as a database leader, its cloud division has gained considerable traction over the past two years, securing major compute contracts with leading AI developers, including OpenAI, the creator of ChatGPT.

But Wednesday’s results intensified questions about how quickly Oracle can convert its massive capital commitments into profits. Mounting doubts about OpenAI’s long-term competitive position — particularly in the face of aggressive moves by rivals like Google, part of Alphabet (NASDAQ:GOOGL) — have added further pressure on Oracle’s shares in recent weeks.

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