Oracle’s positive intraday move reflects a highly anticipated technical and fundamental rebound, as the stock reached deep oversold territory and found strong support after a prolonged downward trend. Investors have begun to reassess the company’s massive discrepancy between its market valuation and its unprecedented business demand, recognizing that the selling pressure over the past several months had arguably overshot the underlying reality.

The primary catalyst for the turnaround is a growing consensus that the sell-off went too far relative to Oracle’s explosive growth in artificial intelligence infrastructure. While the market had recently been hyper-focused on the company’s negative free cash flow—driven by aggressive…