Oracle’s stock plunge raises questions about the AI bubble, with the stock dropping from $328 to $178 before rebounding to $192. Blue Owl Capital’s decision not to back a data center in Michigan triggered investor anxiety. Despite this, ETFs continue to hold Oracle due to its high placement in major indexes.

US ETFs have significant exposure to Oracle, with 11 holding 5% or more of their assets in the stock. Morningstar Direct data shows QMOM as the second-biggest seller of Oracle stock, offloading over $5 million. Capital Group Growth ETF sold nearly $59 million, though it represented a small portion of the fund’s assets.

While Oracle’s stock is down, some analysts believe it’s undervalued but caution against viewing it as a buying opportunity due to uncertainties around its data-center buildout. Morningstar’s fair-value estimate is $277 per share. Only investors with high risk tolerance or strong conviction in AI’s future should consider Oracle.

WisdomTree’s US Quality Growth ETF was the biggest recent buyer of Oracle stock, while Pacer Data and Digital Revolution ETF has the largest allocation as a percentage of its assets. Big index funds like iShares Core S&P 500 ETF and SPDR S&P 500 ETF own significant amounts of Oracle stock.

The Oracle stock price changes are more about the company than the broader AI sector. Tech stocks trading at high price-to-sales ratios are common, with Palantir as a prime example. Despite the volatility, some see opportunities in momentum strategies but emphasize the need to exit before a reversal occurs.

Read more at Yahoo Finance: Here Are the Top ETFs Holding Oracle after Its Nosedive