--- title: "Oracle’s AI Trouble Is Wall Street’s New Headache: 2 ETFs to Watch as Data Center Fears Grow" type: "News" locale: "en" url: "https://longbridge.com/en/news/304689690.md" description: "Oracle shares dipped as Microsoft scaled back AI computing leases due to chip obsolescence, highlighting risks in the data center boom. This development impacts ETFs like SKYY, which holds Oracle, and SRVR, facing indirect pressure on data center operators. With OpenAI potentially resetting capacity expectations and holding half of Oracle's backlog, investors are reassessing whether aggressive AI infrastructure spending can sustain growth amid shifting hyperscaler demands." datetime: "2026-11-06T20:44:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/304689690.md) - [en](https://longbridge.com/en/news/304689690.md) - [zh-HK](https://longbridge.com/zh-HK/news/304689690.md) generator: "portal-rs" --- # Oracle’s AI Trouble Is Wall Street’s New Headache: 2 ETFs to Watch as Data Center Fears Grow **Oracle Corp.** (NYSE:ORCL) shares fell briefly on Friday but were still in the green at last check after Bloomberg reported that **Microsoft Corp.** (NASDAQ:MSFT) was winding down an arrangement to lease AI computing capacity from the company. Microsoft reportedly stopped using portions of the leased capacity in recent months and declined to renew the contract, partly because the older-generation Nvidia chips no longer met its evolving requirements. The development puts a spotlight on ETFs holding Oracle and other companies tied to cloud computing and data center infrastructure. ## **Cloud Computing ETFs Have Direct Oracle Exposure** The **First Trust Cloud Computing ETF** (NASDAQ:SKYY) offers one way to assess the potential fallout. Oracle represents 2.99% of the fund’s portfolio. Microsoft accounts for another 4.09%, while **Amazon.com Inc.** (NASDAQ:AMZN) represents 3.87%. The fund also holds companies such as **Arista Networks Inc.** (NYSE:ANET) and **Alphabet Inc.** (NASDAQ:GOOGL), giving investors exposure to different parts of the cloud computing ecosystem. This makes SKYY particularly relevant as investors reassess whether cloud infrastructure providers can sustain their aggressive expansion plans and monetize their growing AI investments. ## **Data Center ETFs Face a Different Kind of Risk** The **Pacer Data & Infrastructure Real Estate ETF** (NYSE:SRVR) offers another angle, focusing on companies that own and operate the physical infrastructure supporting the digital economy. Its largest holdings as of Oct. 30 included **American Tower Corp.** (NYSE:AMT) at 18.03%, **Equinix Inc.** (NASDAQ:EQIX) at 15.89% and **Digital Realty Trust Inc.** (NYSE:DLR) at 15.31%. Unlike SKYY, SRVR does not have direct Oracle exposure among its reported largest holdings. However, its data center operators could face indirect pressure if hyperscalers slow capacity expansion or become more selective about infrastructure commitments. ## Concerns Extend Beyond Microsoft’s Decision The Wall Street Journal reported that OpenAI executives were discussing whether to reset expectations for data center capacity next year. That matters for Oracle because OpenAI reportedly accounts for approximately half of its $664 billion contracted revenue backlog as of Aug. 31, according to S&P. Oracle has also committed heavily to the infrastructure buildout, with capital expenditure reaching $55.7 billion in fiscal 2026 and management projecting $90 billion to $95 billion for fiscal 2027. However, OpenAI’s discussions do not amount to a confirmed reduction in Oracle’s contracted backlog. For ETF investors, Oracle’s mounting infrastructure commitments could become an important test of whether the AI spending boom can deliver sustainable growth for the companies powering it. **Read Also: $7 Billion Gone: DRAM ETF Investors Crushed As Memory Chip Mania Unravels** *Photo: Shutterstock* ### Related Stocks - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [ORAC.US](https://longbridge.com/en/quote/ORAC.US.md) - [ORCS.US](https://longbridge.com/en/quote/ORCS.US.md) - [ORCU.US](https://longbridge.com/en/quote/ORCU.US.md) - [ORCX.US](https://longbridge.com/en/quote/ORCX.US.md) - [ORCZ.US](https://longbridge.com/en/quote/ORCZ.US.md) - [SKYY.US](https://longbridge.com/en/quote/SKYY.US.md) - [SRVR.US](https://longbridge.com/en/quote/SRVR.US.md) - [AMT.US](https://longbridge.com/en/quote/AMT.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [ANET.US](https://longbridge.com/en/quote/ANET.US.md) - [DLR.US](https://longbridge.com/en/quote/DLR.US.md) - [EQIX.US](https://longbridge.com/en/quote/EQIX.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) ## Related News & Research - [Microsoft Pulls The Plug On Oracle AI Rental As Post-Election Data Center Fallout Spreads](https://longbridge.com/en/news/304681650.md) - [Oracle unveils AI data agents to transform business insights](https://longbridge.com/en/news/303878179.md) - ['The Clock Is Ticking,' Says Investor About Oracle Stock](https://longbridge.com/en/news/304470769.md) - [Oracle taps investors for US$20 billion to finance AI expansion](https://longbridge.com/en/news/304032515.md) - [Oracle plans to raise $20 billion through bonds and stock sales](https://longbridge.com/en/news/303963881.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**