Oracle Corporation (ORCL): Leopold Aschenbrenner Is Bearish on This Software Stock

We just covered From Fired Researcher to $13.7 Billion King: How Leopold Aschenbrenner Broke the Hedge Fund World and Oracle Corporation (NYSE:ORCL) ranks 3rd on this list.

Oracle Corporation (NYSE:ORCL) is a new addition to the 13F portfolio of Situational Awareness LP. The fund declared a new stake in the company in filings for the first quarter of 2026. This stake consists of PUT bets worth close to 7 million shares. The firm offers products and services that address enterprise information technology environments worldwide. Cloud services account for the largest share in the revenue mix for the company. In recent months, Oracle has started building data centers within AWS, Azure, and Google Cloud. It is also partnering with OpenAI on a $300 billion Stargate AI project. The contract backlog of the company has reached close to half a trillion dollars.

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Apart from Leopold Aschenbrenner, other prominent fund managers with bearish bets on Oracle Corporation (NYSE:ORCL) include Ken Griffin, Israel Englander, D.E. Shaw, Chris Rokos, and Sander Gerber, among others. The bear case for the stock revolves around converting the massive contract backlog into recognized revenue. This would require building physical data centers, like the proposed Stargate AI cluster, that do not yet exist. Bearish money managers are betting that the market has prematurely priced in this $553 billion backlog as immediate earnings, completely ignoring the intense execution risk, supply-chain delays for cooling turbines, and power-grid connectivity bottlenecks that could push actual revenue recognition.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

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