Oracle stock crashed 43% from its year-to-date peak of $248 and change, with a 9% single-week drop triggered by OpenAI's delayed IPO. Despite the selloff, a swelling backlog of signed AI compute contracts signals real demand, not speculation. William Blair added Oracle to its conviction list, citing it as discounted versus AI infrastructure peers with improving fundamentals. The company recently cut 21,000 jobs and carries significant debt and negative cash flow, reallocating resources to serve its massive backlog and meet AI compute demand. The article notes that OpenAI, Oracle's top client, is a source of anxiety for investors due to its financial situation and IPO delay, but describes the latest drawdown as an overreaction.