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Oracle Shares Slide as AI Capex Jumps to $50 Billion, Pressuring Tech

Heavy debt alongside a negative free‑cash‑flow quarter has investors doubting the enlarged buildout’s funding.

Overview

  • Oracle lifted its capital‑spending plan to roughly $50 billion for AI data centers, about $15 billion above prior guidance.
  • Shares fell by double digits in early trading, erasing tens of billions in market value and dragging AI‑linked stocks such as Nvidia, AMD, Broadcom and CoreWeave lower.
  • Quarterly revenue came in at $16.06 billion versus $16.21 billion expected, while adjusted EPS of $2.26 was boosted by a $2.7 billion Ampere stake sale.
  • Remaining performance obligations surged to about $523 billion, reflecting large future contracts that include commitments tied to major tech customers.
  • Analysts highlighted funding risk, citing elevated leverage near $100 billion and roughly $10 billion of negative free cash flow, as broader markets traded mixed with the Nasdaq lagging.