Citi says investors should consider buying tumbling tech stock

Microsoft, Alphabet, Amazon, Meta, and Oracle are investing heavily in AI infrastructure, with investors scrutinizing returns. Microsoft and Alphabet show strong AI-related profit growth, while Amazon's AWS profits contrast with negative free cash flow. Meta's revenue grows, but costs rise faster. A Reuters analysis suggests these companies' capex may exceed combined free cash flow by 2027. Microsoft's Q4 2026 revenue was $90B, with $41B in capex. Alphabet's Q2 2026 revenue was $119.8B, with $24

Oracle is cutting 3,000 jobs in India, part of a broader restructuring effort that has reduced its global workforce by 21,000 in the past year. The company is redirecting resources toward AI and cloud infrastructure, with $55.7 billion spent on infrastructure in fiscal 2026 and $1.8 billion in restructuring costs, according to reports.

NVIDIA (NVDA) and Oracle (ORCL) are raising billions for AI infrastructure, making them more sensitive to interest rates and credit markets. Analysts warn that rising rates could compress AI stock multiples, with August seeing $100B in extra corporate credit. NVDA aims to raise $500B in third-party capital, while ORCL plans $40B in debt/equity. Treasury yields are also under pressure from global debt issuance.

Oracle is cutting 3,000 jobs in India, part of a broader reduction of 21,000 employees (13%) in its fiscal year, due to AI data center costs and restructuring. Microsoft has placed 400-500 India employees on performance improvement plans. Oracle's stock rose 5% on the news, despite the cuts, as it reports strong cloud infrastructure demand and 17% revenue growth.

Oracle may cut 7,000-10,000 jobs globally, with Indian employees potentially affected. The company has already reduced its workforce by 21,000 in the past year while investing in cloud and AI. Severance costs totaled $1.8 billion. No official confirmation or timeline has been provided.

Oracle, a major software company, recently laid off 21,000 employees and may cut 7,000 to 10,000 more globally. The layoffs are part of a shift towards AI, reducing its workforce by 13% to 141,000 employees as of May 31.