The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting a strategic re-evaluation of AI sector opportunities, Situational Awareness LP, led by Leopold Aschenbrenner, has liquidated its entire 152,000-share stake in Western Digital (WDC). According to reports, the fund also initiated a bearish stance against Oracle (ORCL) by acquiring put options, citing significant execution risks in converting its massive backlog into realized revenue. The exit from WDC follows a search for higher AI returns elsewhere, while the bet against Oracle is driven by concerns over data center infrastructure bottlenecks and supply chain risks.
This divestment comes as cloud infrastructure providers face mixed performance signals; Oracle recently reported a 7% year-over-year revenue increase in its latest fiscal quarter, according to official earnings filings, which trailed some aggressive investor expectations. Per market data, competitors like Microsoft and Amazon continue to dominate cloud market share expansions, intensifying the pressure on Oracle to execute on its backlog. These industry-wide supply chain constraints support the fund's cautious outlook on Oracle's ability to scale rapidly in the current environment.
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Sign InTraders should monitor current price levels, with WDC closing at $74.20 and ORCL at $125.40 (close May 31, 2026). Looking ahead, technology sector sentiment may be influenced by broader economic data, such as the U.S. Core PCE Price Index which showed a 0.2% increase on May 28, 2026, impacting growth stock valuations. Upcoming Federal Reserve commentary will also be a key catalyst for risk appetite in high-multiple software and infrastructure equities.