Is Oracle’s stock spike the strongest indicator yet that we’re in an AI bubble?

Group 1 - Oracle's shares surged nearly 40% following the announcement of a $300 billion deal with OpenAI for computing power over the next five years [1][3] - The company reported fiscal first-quarter earnings that missed analyst expectations on earnings per share and revenue, yet investors were optimistic due to strong cloud demand [2] - Oracle's remaining performance obligations reached $455 billion, a 359% increase from the previous year, significantly surpassing Wall Street's expectation of $180 billion [2] Group 2 - The OpenAI deal is one of the largest cloud contracts ever signed, requiring power equivalent to that of 4 million homes [3] - Oracle's stock is trading at nearly 50 times the company's 12-month forward earnings, the highest multiple since the dot-com crash [4] - Despite concerns about potential overexcitement in the AI sector, Oracle's expected cloud revenue and the OpenAI deal provide a solid foundation for its stock performance [5]