Oracle Corporation (ORCL) Slips Amid Concerns Over Debt-Fueled AI Data Center Expansion

Core Insights - Impax US Sustainable Economy Fund reported a total return of 16.00% for its Institutional Class in 2025, slightly underperforming the Russell 1000's return of 17.37% due to sector allocation and company-level developments [1] - The fund's performance was positively influenced by sustainability tilts and stock-specific gains, particularly in Health Care and Financials, despite market volatility and concerns over elevated valuations [1] - Management maintains a cautiously optimistic outlook, supported by falling interest rates, resilient corporate earnings, and continued investment in businesses benefiting from the transition to a sustainable economy [1] Company-Specific Insights - Oracle Corporation (NYSE:ORCL) is highlighted for its strong sustainability profile and opportunities in Digital Infrastructure, Education, and Enhanced Skills & Innovation [3] - The stock of Oracle Corporation experienced a one-month return of -11.45%, with shares trading between $118.86 and $345.72 over the past 52 weeks, closing at approximately $153.97 on February 17, 2026, with a market capitalization of about $442.52 billion [2] - Concerns have arisen regarding Oracle's accumulation of excessive debt to finance its AI data center expansion, which has contributed to its recent stock decline [3][4] Hedge Fund Interest - Oracle Corporation is not among the 30 most popular stocks among hedge funds, with 122 hedge fund portfolios holding the stock at the end of Q3 2025, a slight decrease from 124 in the previous quarter [4] - There is a belief that other AI stocks may offer greater potential for higher returns compared to Oracle Corporation [4]