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Oracle Funding Woes Sink Tech Stocks
18 Dec
Summary
- Oracle's funding concerns triggered a market downturn.
- LG Energy's contract loss significantly impacted stock value.
- Micron announced record earnings despite market fears.
South Korean stocks opened lower as investor sentiment was dampened by worries about Oracle securing adequate funding for its data center construction. The KOSPI index saw a significant drop, with most large-cap stocks declining. LG Energy Solution's stock plummeted following the announcement of a terminated 10 trillion Korean won battery supply contract with Ford, a major blow to the secondary battery sector.
Market concerns were amplified by news that a potential investor, Blue Owl Capital, had ended investment negotiations with Oracle, raising fears about expanded funding risks. This situation affected major tech players, including NVIDIA and Broadcom, which also saw declines, highlighting funding challenges for AI-driven companies.
However, Micron, a key semiconductor bellwether, reported historic earnings shortly after the U.S. market close. The company cited improved memory semiconductor market conditions for its revenue growth and projected further increases. This positive news offered a glimmer of hope, although it did not fully offset the broader market's anxieties driven by Oracle and LG Energy's situations.
