Oracle’s 20% Plunge Proves What Micron Knew All Along: AI Demand Is About to Collapse - Yahoo Finance

Oracle's 20% stock plunge over five days has sparked widespread market skepticism about the future of the artificial intelligence (AI) sector. Despite exceeding revenue expectations in its latest earn... Read original →

Oracle’s stock plunge marks the first clear signal of AI investment euphoria unwinding. Its $70B data center bet ignores a critical trend: AI inference efficiency is improving over 40% annually, drastically reducing per-unit compute demand for memory and bandwidth. Micron’s caution aligns with this inflection—HBM and LPDDR5 demand will shift from volume scaling to power-performance optimization, pressuring equipment makers like Lam Research with delayed orders. On compliance, the SEC is tightening scrutiny on debt-financed tech expansions; Oracle’s leverage risks credit downgrades. NVIDIA retains near-term training chip dominance, but cloud players like CoreWeave are pivoting to custom ASICs to cut TCO. Over the next 18 months, infrastructure projects relying on brute-force GPU stacking will stall, while vendors mastering compute-memory co-design will lead. This correction isn’t the end of AI—it’s the painful but necessary transition from arms race to precision economics.