What This Tanking Tech Giant Says About the AI Narrative

Editor's note: We've covered why the AI boom isn't running out of steam just yet. But this trend will have winners and losers... And according to Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – one tech giant's sell-off has spooked investors. In this essay, recently published in the free Chaikin PowerFeed e-letter, Marc explains why keeping our emotions in check is critical in today's market.

A few months ago, tech giant Oracle (ORCL) shocked the markets with an unprecedented deal...

Back in September, news emerged that ChatGPT maker OpenAI pledged to spend $300 billion renting Oracle's servers to train its AI models.

But there's a slight issue. These servers will be housed in data centers that don't exist just yet.

Of course, part of the deal was for Oracle to build these data centers as well. Oracle would have to build five massive data centers with millions of chips to stay good on its promise.

It's no secret that Oracle's stock struggled during the early months of 2025...

But around the middle of the year, it started taking off as the AI narrative ramped up. And in June, the stock moved into "bullish" territory in the Power Gauge. (That's the tool we use at Chaikin Analytics to combine investment fundamentals into a simple, actionable rating ranging from "very bullish" to "very bearish.")

When news of the OpenAI deal emerged in September, Oracle surged 36%... in a single day.

At this peak immediately after the announcement, Oracle's stock had soared about 97% year to date.

That's an incredible gain. Investors who sold at that peak would have walked away with a nice profit.

I hope many of them did. That's because the alternative isn't pretty, folks...

Oracle's Stock Erases Its 36% Gains

By now, ORCL shares are down about 42% from the peak on September 10. Take a look at this chart...

Sure, Oracle's stock is still up about 14% since the beginning of this year. But that's less than the S&P 500 Index's roughly 16% gain over the same time frame.

You'll also note in the chart above that the Power Gauge hasn't been "bullish" on Oracle since late October. Starting in mid-November, the stock slipped into "bearish" territory for about a month. Right now, it gets a "neutral" rating.

Looking ahead, I'm not holding my breath for a better rating...

Last Wednesday after the market close, Oracle reported second-quarter earnings for its 2026 fiscal year. Despite an earnings-per-share ("EPS") beat, investors weren't impressed...

The stock fell by about 11% the next day. And it has continued falling since then. 

Meanwhile, analysts are increasingly "bearish" on Oracle's future. For example, Bank of America lowered its price target for the stock.

Broadcom (AVGO) saw a similar event...

On Thursday after the market close, the semiconductor giant also reported an EPS beat. But its stock fell by more than 11% the next day.

As you've surely noticed, the AI narrative has been changing...

AI Sentiment Is Shifting

Companies have spent a mind-boggling amount of money on AI in 2025. Investors want to see better results to justify the massive spending on AI infrastructure.

And folks are still wondering whether all this will be worth it for investors.

Sure, big-name stocks like Oracle have seen incredible growth. And it's hard to forget the feeling of seeing an investment grow by 36% in one day.

But we simply can't let our emotions cloud our judgment.

Not all AI stocks are created equal. And flash declines like we've seen with Oracle could become more commonplace next year.

Investors need to know how to determine whether a stock's decline is temporary... or if it's time to walk away.

That's why I recently went on camera to share a serious warning...

I was joined by a special guest who has dedicated his entire career to timing big market shifts. And together, we shared the details on a never-before-seen tool that can help prepare you for a "tipping point" in the markets in 2026.

I urge you to listen to what we have to tell you. You'll want to make sure you're positioned properly for what's likely to be a volatile ride ahead.

Good investing,

Marc Chaikin

Editor's note: Marc predicted the 2025 sell-off, the 2022 bear market, and the 2020 crash – all weeks in advance. Now, he's warning that the recent market volatility will likely worsen in the weeks to come. But he's stepping forward to reveal an "ironclad financial battle plan" for what's coming... including the No. 1 step you need to take with your money before January 1.