The tech giant is spending billions to chase the AI boom, yet the stock has stumbled. Here’s how to think about the disconnect.

Oracle (ORCL) is in the middle of a major transformation, spending tens of billions of dollars to build out the data centers needed to power the artificial intelligence revolution. On its latest call, management detailed plans for an expected net cash outlay for capital expenditures of around $70 billion in fiscal 2027, backed by $638 billion in remaining performance obligations. The company is focused on becoming a foundational player in AI infrastructure. Yet the stock has seen a sharp recent pullback, falling about 34% from its recent high. This contrast between an ambitious long-term strategy and…