Oracle Corp. shares dropped by 5.4% last week, and an additional 2% in overnight trading, following Chairman Larry Ellison's decision to terminate a plan to sell up to 50 million company shares, valued at roughly $7.5 billion. This cancellation, initially set to run from June through October 2026, occurred despite a recent rally in Oracle's stock. The market's reaction also reflects broader concerns about Oracle's increasing restructuring costs, now projected at $2.8 billion for 2026, up by $700 million, largely due to employee severance. Furthermore, uncertainty surrounding Oracle's AI contracts, particularly with OpenAI, whose CEO Sam Altman stated the company would not go public in 2026, is adding to investor apprehension.
Conversely, SpaceX shares are poised for a potential boost, with its Nasdaq 100 weighting expected to more than double from 1.28% to approximately 2.82% later this month. This increase could trigger billions of dollars in passive-fund buying, as funds tracking the Nasdaq 100 held about $1.7 trillion in assets at the end of the second quarter. The stock closed 2% higher at $151.21 on Friday, marking its third consecutive weekly gain.
Elon Musk further fueled investor interest by expressing high confidence that SpaceX will launch Nvidia Vera Rubin NVL72 AI computers into orbit in 2027. These space-optimized computers, designed for the unique constraints of orbit, are part of SpaceX's strategy to build its AI infrastructure exclusively around Nvidia. SpaceX's long-term goal includes a constellation of up to one million AI satellites, with Musk predicting space will become the cheapest place for AI within two to three years. The company has already secured compute-rental agreements with Anthropic and Google.
