Oracle stock price falls, taking Nvidia and other AI chip giants with it: Why tech are shares reeling today?

Core Viewpoint - Oracle's disappointing Q2 2026 earnings results have led to a significant drop in its stock price, impacting the broader tech and AI sectors [2][3][8] Financial Performance - Oracle reported non-GAAP earnings per share (EPS) of $2.26, a 54% increase, and total revenue of $16.1 billion, a 14% increase [6] - Analysts had expected total revenue to be higher at $16.21 billion, leading to investor disappointment despite the EPS beating expectations [3] Market Reaction - Oracle's stock price fell over 12% to $196.25 per share following the earnings report [8] - Major chip companies in the AI space experienced stock price declines, including AMD, Arm, Broadcom, Intel, Micron, NVIDIA, Qualcomm, and TSMC, with drops ranging from 0.9% to 1.4% [7] Industry Concerns - The announcement of new agreements with AI investors like Nvidia and Meta raised concerns about circular spending in the AI industry, contributing to fears of an AI bubble [4] - Oracle's remaining performance obligations increased to $523 billion, but the circular spending concerns have renewed skepticism among investors [4]