CNBC Daily Open: Oracle's Debt Concerns Impact Projects

Investor worries surrounding Oracle's financial health are now impacting the company's operations, beyond just its stock price. Oracle's stock has fallen nearly 50% since its all-time high on September 10.

According to the Financial Times, Blue Owl Capital has reportedly withdrawn from Oracle's $10 billion data center project, citing unfavorable debt terms. This development intensifies concerns, initially reported by Bloomberg, that Oracle might delay the completion of data centers intended for OpenAI. That said, the reality is a bit more complicated. Oracle has denied these reports.

Oracle shares experienced a 5.4% drop on Wednesday, bringing month-to-date losses to over 11%. This downturn affected related stocks, including Broadcom, Nvidia, and Advanced Micro Devices.

The overall market also felt the impact, with major U.S. indexes declining. The S&P 500 fell by 1.16%, the Dow Jones Industrial Average decreased by 0.47%, and the Nasdaq Composite suffered a 1.81% loss, marking its worst day in almost a month.

Despite the recent dip in artificial intelligence stocks, Bank of America analysts believe the AI sector still has growth potential into 2026. That said, the reality is a bit more complicated. they caution that rising stock prices don't necessarily rule out the formation of a bubble.

Bank of America analysts stated that this progression validates their thesis that a larger AI bubble continues to build.

The challenge, as always, lies in accurately predicting when the bubble might burst, if that's even possible.

Major U.S. indexes fell amid weakness in AI stocks. The S&P 500 and Dow Jones Industrial Average both recorded their fourth consecutive losing session. The pan-European Stoxx 600 closed flat, but the FTSE 100 increased by 0.9% after data revealed a greater-than-expected cooling of U.K. inflation in November.

In other news:

• Blue Owl Capital pulls out from Oracle project:** Concerns regarding Oracle's debt led Blue Owl to withdraw from funding a $10 billion data center project for OpenAI, the Financial Times reported.
• Magnum is 'destroying' Ben & Jerry's, co-founder says:** Ben Cohen, co-founder of Ben & Jerry's, criticized Magnum's statements about governance changes as "Orwellian." Magnum is the parent company of Ben & Jerry's, among other ice cream brands.
• Micron forecasts surging revenue:** Driven by strong demand for memory chips, Micron anticipates revenue of approximately $18.70 billion for the current quarter, exceeding the $14.20 billion expected by LSEG. Micron also surpassed fiscal first-quarter earnings expectations.
• [PRO] One chart is worrying Michael Burry:** The investor known from "The Big Short" highlighted a Wells Fargo chart illustrating a U.S. household trend that has historically preceded bear markets lasting for years.