Oracle’s AI Buildout Faces Market Test as Capex Swells and Credit Concerns Rise

Overview

• Oracle shares have fallen about 36.7% since mid‑October as investors question the pace of data‑center expansion, with Jim Cramer adding that a $100 billion OpenAI raise could shift sentiment.
• Finance chief Doug Kehring outlined roughly $50 billion in fiscal 2026 capital spending, while some analysts now model the total could reach as high as $60 billion.
• The company sold $18 billion of bonds in September and credit default swaps have climbed, prompting debate over its ability to preserve an investment‑grade rating.
• Reporting points to Oracle arranging about $248 billion in leases to expand cloud capacity in support of large AI workloads, intensifying scrutiny of financing needs.
• Despite financing pressure, FQ2 showed strong cloud momentum with total revenue up 13% year over year, OCI up 66%, and GPU‑related revenue up 177%, though revenue and free cash flow missed expectations.