Oracle's AI Spending Bill Keeps Growing: Capex Could Hit $100 Billion As Stargate Expands
View original at finance.yahoo.comOracle's AI Spending Bill Keeps Growing: Capex Could Hit $100 Billion As Stargate Expands Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below…
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Oracle continues to make progress on its cloud infrastructure strategy, with financing concerns partly addressed through bring-your-own-cloud arrangements, customer prepayments, and OpenAI's $122 billion fundraising to support compute needs.
60% confidenceInvestors will watch for updates on headcount after Oracle's reduction-in-force, the timing of a previously announced $20 billion at-the-market equity issuance, and whether Oracle waits until investor day to update its 2030 outlook for new capex and financing assumptions.
60% confidenceOracle's fiscal 2027 capital expenditure guidance is expected to land between $80 billion and $100 billion as the company accelerates development of non-Abilene Stargate campuses.
60% confidenceBNP Paribas raised its fiscal 2027 capex estimate to $83 billion from $72 billion, above the consensus of about $60 billion.
60% confidenceBNP Paribas values Oracle at 30 times fiscal 2028 non-GAAP EPS, discounted back, because it sees greater visibility into Oracle's fiscal 2028 earnings outlook.
60% confidenceOracle is expected to deliver a broadly in-line fiscal fourth quarter, including OCI growth near the 92% consensus estimate.
60% confidenceHigher capex spending could reflect newer-generation NVIDIA Corp GPUs and broader inflation, with several Stargate sites expected to see first deliveries in the second half of calendar 2026 or the first half of calendar 2027.
60% confidenceBNP Paribas' April software reseller checks showed softer trends for Oracle outside OCI, particularly in database and SaaS segments. The survey has less visibility into OCI due to OpenAI's exposure.
60% confidenceOracle's first-quarter fiscal 2027 guidance is expected to bracket consensus expectations for 27% revenue growth and $1.69 in adjusted EPS, while Oracle reiterates its fiscal 2027 revenue guide of $89 billion.
60% confidenceFiscal Q4 FY2026 results will be Oracle's first under new CFO Hilary Maxson, creating some uncertainty about whether the company will adopt a more conservative guidance approach after a 70% share-price rebound from April lows.
60% confidence
Data points we hold from this source
| OpenAI · cash | 12200000000 USD |
| Oracle Corporation · capex | 60 USD |