Yahoo Finance Tech·5 min read

Down 21% This Year: Is Oracle the Most Undervalued AI Stock on the Market?

Oracle's stock has dropped significantly amid AI disruption fears.

Oracle's stock has faced a significant decline of nearly 21% in 2026, driven by investor concerns over AI disruption affecting legacy tech companies. However, Oracle is aggressively transitioning towards an AI-centric business model, planning to invest $50 billion in AI infrastructure and reporting a remarkable 325% increase in its project backlog, largely due to its partnership with OpenAI.

Key Takeaways

  • 1.

    Oracle's stock is down nearly 21% year-to-date as of March 2026.

  • 2.

    The company plans to invest $50 billion in AI infrastructure this fiscal year.

  • 3.

    Oracle's project backlog surged to $553 billion, driven by its work with OpenAI.

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