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  • Oracle plans to raise $45b to $50b through a mix of debt and equity to rapidly expand its cloud infrastructure.

  • The funding is tied to contracted demand from major AI and tech clients including AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI.

  • The announcement comes as Oracle, NYSE:ORCL, pursues long term growth in AI focused cloud services.

Oracle, NYSE:ORCL, is committing substantial capital to support cloud demand from large AI and social platforms, with the stock last closing at $164.58. The company has reported a 92.7% return over 3 years and 179.3% over 5 years, while its 1 year return sits near flat at a 1.4% decline. More recent moves include a 9.8% decline over 7 days and a 15.9% decline over both 30 days and year to date.

For investors, the planned $45b to $50b raise signals a clear focus on scaling data center and AI capacity to meet existing client commitments. The size and structure of this funding, along with execution on these cloud build outs, may be key areas to watch as Oracle manages growth ambitions alongside its capital structure and risk profile.

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NYSE:ORCL 1-Year Stock Price Chart NYSE:ORCL 1-Year Stock Price Chart

Why Oracle could be great value

  • ✅ Price vs Analyst Target: At US$164.58 versus a consensus target of about US$285.24, the price is roughly 42% below analyst expectations.

  • ⚖️ Simply Wall St Valuation: Simply Wall St flags Oracle as trading close to estimated fair value.

  • ❌ Recent Momentum: The 30 day return of about 15.9% decline shows weak short term momentum.

Check out Simply Wall St’s in depth valuation analysis for Oracle.

  • 📊 A US$45b to US$50b raise tied to AI cloud demand leans heavily into long term data center growth for large enterprise and AI clients.

  • 📊 Watch how the mix of debt and equity affects interest costs, share count and returns as Oracle scales capacity for AMD, Meta, NVIDIA, OpenAI, TikTok and xAI.

  • ⚠️ The funding could lift leverage at a time when Oracle already has a high level of debt and some earnings are classified as non cash.

For the full picture including more risks and rewards, check out the complete Oracle analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.