The artificial intelligence stock bubble does not show much sign of popping. That would suggest that investors need not worry about Nvidia (NVDA), Apple (AAPL), or other big tech companies. That included Alphabet (GOOG), Microsoft (MSFT), and Cisco Systems (CSCO).
The bad news is the Iran conflict. Stock markets jumped on President Trump's suggestion of interest in ending the war. However, Iran’s Regime (Islamic Revolutionary Guard Corps or IRGC) escalated its threats of attack. It said on Wednesday that the above-named tech firms are legitimate targets for its missiles and drones.
Just as the IRGC attacked ships on the side of the U.S. and Israel, it considered those tech firms as possible targets.
Stock markets did not react to the threat. Firms like HP (HPQ), Intel (INTC), Oracle (ORCL), Palantir (PLTR), and IBM (IBM) traded steadily. Still, Oracle is the exception for different reasons.
The CDS, or insurance against a debt default, for Oracle’s bonds rose. That will put pressure on Oracle stock, which is still on a downtrend. Oracle shares peaked at $345.72 last September 2025. Back then, executives could tout bookings to support their bullish outlook. However, the firm is reportedly laying off 18% (or 30,000) of its staff.
Firms that are in a growth phase and in the AI industry do not cut staff. That move suggests that Oracle overspent on AI datacenter servers. It needed to cut costs by laying off staff.
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