AI Boom Weighs on Nvidia and Oracle Shares Despite Strong Long-Term Prospects

Nvidia and Oracle shares have taken a hit in recent months due to concerns over circular financing and rising AI expenses.

Nvidia's share price has fallen 9% over the past three months, while Oracle's has plummeted 28%.

However, experts argue that the long-term growth prospects for these companies remain intact, driven by the ongoing AI boom.

Nvidia is set to benefit from its dominance in the GPU market, with a significant share of the data center market and opportunities for growth in the CPU space.

Oracle, despite increasing spending on AI infrastructure, has a large backlog of lucrative contracts worth $638 billion, providing a stable revenue stream.