Oracle's $12B Capex Bill Sinks Stock, Hits Nvidia and Crypto

Oracle just reminded Wall Street that building the AI future is expensive. The enterprise software giant reported fiscal Q2 2026 earnings on December 10, 2025, and investors responded the next morning by heading for the exits. The stock cratered nearly 11%, with intraday losses reaching as steep as 14-15% before a modest recovery.

The culprit was a capital expenditure figure that made analysts do a double-take: $12 billion in a single quarter. That's roughly three times the approximately $4 billion Oracle spent in the same period the prior year, and about 50% higher than the roughly $8 billion analysts had penciled in. The selloff erased somewhere between $80 billion and $100 billion in market capitalization in a single trading session.

Oracle's top line came in at $16.1 billion, narrowly missing the $16.2 billion Wall Street consensus. Oracle's long-term debt ballooned to $99.6 billion, a 25% jump compared to the same period a year earlier. In English: for every dollar of quarterly revenue Oracle brought in, it was carrying more than six dollars of long-term debt.

The company has been spending aggressively to position itself as a major player in AI cloud infrastructure. A multi-year partnership with OpenAI is among the crown jewels of that strategy, promising massive AI workloads flowing through Oracle's cloud.

Oracle's bad day didn't stay contained. The selloff rippled outward into the broader AI investment ecosystem, pressuring stocks like Nvidia that are deeply tied to the AI infrastructure buildout narrative. Nvidia shares fell 3.77% to $200.34 on the session. The crypto market felt it too. Bitcoin dropped below $90,000 shortly after Oracle's earnings hit the wire.

Large institutional portfolios that hold both tech equities and crypto tend to de-risk across the board when sentiment turns. A portfolio manager who wakes up to an 11% loss in Oracle isn't feeling particularly adventurous about their Bitcoin allocation that afternoon.

Oracle's debt trajectory is worth watching closely in coming quarters. At $99.6 billion and climbing 25% year over year, the company is operating with thin margin for error. Oracle's $12 billion capex quarter won't be the last time an AI spending number sends shockwaves across asset classes.