Why Oracle Stock Is Plummeting Today
Shares of Oracle (NYSE: ORCL) are sinking Monday. The firm's stock had lost 14.2% as of 2:45 p.m. ET, but was down as much as 15.5% earlier in the day. The surge comes as the S 500 and Nasdaq Composite lost 1.8% and 3.2%, respectively.
Oracle was hit by the big news of the day -- the revelation of the latest version of the Chinese artificial intelligence (AI) model DeepSeek -- as well as complications with President Trump's AI initiative.
A Chinese firm created the AI model DeepSeek, which is capable of competing with top models from OpenAI and Amazon, for a fraction of the price. DeepSeek R1, the newest version, was released last week, sending shockwaves through the world of AI. It was revealed that not only was R1 trained for just millions of dollars -- equivalent U.S. models take billions -- it was trained using underpowered Nvidia chips. Despite these limitations, it performs on par with its U.S. rivals.
Source Fool.com
Oracle Corp. Stock
The stock is one of the favorites of our community with 97 Buy predictions and 3 Sell predictions.
With a target price of 233 € there is a hugely positive potential of 85.6% for Oracle Corp. compared to the current price of 125.54 €.
