Oracle shares fell after the company announced plans to raise billions of dollars to fund the expansion of its AI infrastructure. The headline refers to a $20 billion AI problem, but the article does not detail that figure.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
OracleAI investmentdata centersNVDA
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/02/2026 | 202.06 |
| Change that session | -1.26% |
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 11/02/2026 | 507.12 |
| Change that session | -2.83% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Oracle Calls Force Majeure Already?
Oracle has invoked force majeure on the Jupiter data center project in New Mexico, claiming it is not liable for costs or expenses if the project is delayed. The project is being developed by a subsidiary of Blue Owl, is backed by OpenAI and SoftBank, is slated to come online in 2028, and is the one project committed to fuel cells, which is part of Bloom Energy's AI infrastructure thesis. Jon Quast says the clause lets Oracle avoid payments before the facility generates revenue, given public backlash and possible regulatory delays. Lou Whiteman says the dispute would be useful for investors in clarifying liability, and asks whether Blue Owl could backfill the project if Oracle walks away.
- TD Cowen Thinks Nvidia Is Helping Oracle Get Its Data Centers Financed
TD Cowen analyst Michael Elias wrote on October 20, 2026 that Nvidia may be giving Oracle credit support, such as lease guarantees or subleases, to help it secure lender funding for AI data centers. Neither company has confirmed this, and the size of any support is unknown. The view is linked to a reported five-year deal in which Tencent would lease about 100,000 advanced AI chips in Oracle data centers in Southeast Asia, estimated at about $7 billion with roughly 30% paid upfront, though that deal is also unconfirmed. The report points to Oracle's cash strain: its capex of $28.5 billion exceeded revenue of $19.3 billion, free cash flow was negative $5.4 billion, and it sold $20 billion of stock during the quarter. S&P cut Oracle to BBB-, its lowest investment-grade rating, in July, and any further downgrade would push its debt into junk territory.
- Tech companies need more data centers. So why are nearly half of all planned projects delayed or canceled?
Global hyperscale spending is projected at about $700 billion, yet many U.S. data center projects are running late: according to the Sandstone Group, nearly half of planned projects are behind schedule, while industry research puts 30% to 50% of the 16 GW of U.S. capacity due online at risk of severe delays or cancellation. Allianz Research cites lengthy permitting, a shortage of roughly 439,000 skilled construction workers, and electrical equipment deficits as key reasons. In markets such as Northern Virginia, Phoenix and Dallas, waits to clear grid interconnection queues routinely run four to seven years. Oracle and OpenAI also scrapped plans to expand the 1,000-acre Crusoe Energy-developed AI campus in Abilene, Texas, from 1.2 GW to 2.0 GW, after negotiations stalled over financing and utility timelines.
- 5 AI Infrastructure Stocks to Buy and Hold Through 2030
The article highlights five companies across different layers of AI infrastructure: Marvell (MRVL), AMD, Forgent Power Solutions (FPS), Oracle (ORCL) and Brookfield (BN). Marvell's data center revenue rose 46% and made up 79% of sales, with the stock trading at about 30 times forward earnings, while AMD's revenue grew 50% and its stock trades at about 42 times forward earnings. Forgent's $3 billion backlog covers more than 90% of expected next-year revenue, and Oracle's remaining performance obligations total $664 billion with its stock at about 14 times forward earnings. Brookfield is planning a $100 billion AI data center campus in Kentucky with NextEra Energy. The author says he spreads his AI investments across these different parts of the build-out to reduce the risk that hyperscaler AI spending slows.
- Why Oracle Stock Is Down Today
Oracle is raising $20 billion through a $10 billion sale of new common stock and $10 billion of senior notes to fund its AI build-out, and shares fell 6.9% as of 12:52 p.m. ET on Monday, Nov. 2. The raise falls within the cap of $20 billion through fiscal 2030 that Oracle announced last week, so the article says it is not a surprise. The company says the cash will go toward capital spending, paying down other debts and 'future investments or acquisitions.' The author is not convinced Oracle will stick to the cap, since capital spending could still grow while data center revenue is delayed by construction snags and political opposition.
- Oracle Stock Plunge Tops $60 Billion Amid $20 Billion Stock and Bond Sale. Why the Sell-Off Could Be an Opportunity
Oracle (ORCL) shares have fallen about 15% since Wednesday's close, when the company was valued at about 437 billion USD; it is now worth about 372 billion USD, a loss of over 60 billion USD in less than a week. The latest drop came on Monday, when Oracle launched a 10 billion USD stock offering and a separate 10 billion USD bond sale at the same time. The timing stood out because at its investor day, Oracle had said it was committed to limiting additional capital raises through FY30 to 20 billion USD, excluding refinancing of existing debt. The company is spending heavily on data centers for AI customers, with about 236.1 billion USD of consolidated debt outstanding as of Aug. 31. The article also cites Oracle's targets, including over 225 billion USD in fiscal 2030 revenue and 30 billion USD or more of free cash flow in fiscal 2029, while noting the plan depends on AI customers continuing to pay and that Oracle may need more money than it promised.
Related markets
Latest news
- Beyond Exports, Vietnam's Economy Hits a New Record in 17 Years
According to Vietnam's Statistics Office (Ministry of Finance), total registered foreign direct investment (FDI) in Vietnam in the first 10 months of 2026 reached $54.85 billion, up 74.0% year on year and the highest since 2009. Newly registered capital came to $30.73 billion from 3,478 projects, 2.2 times higher in value, with manufacturing and processing accounting for 47.5% and Singapore the largest investor at $9.52 billion. Capital adjustments added $16.13 billion, up 33.2%, while foreign capital contributions and share purchases totaled $7.99 billion, up 49.6%. Disbursed FDI was estimated at $24.08 billion, up 13.1%, the highest for the same 10-month period in five years, with manufacturing and processing making up 82.9%.
- Credo vs. Sandisk: Which Stock Is the Better Buy for 2027?
The article compares Credo Technology (CRDO), which supplies high-speed connectivity for AI data centers, with Sandisk (SNDK), a NAND flash storage maker. Credo's trailing-12-month revenue is nearly $1.6 billion, up roughly 165%, and it carries no debt; Sandisk's is about $29 billion, up roughly 272%, and it also has no debt. Analysts expect Sandisk's adjusted earnings to reach $237 in fiscal 2027, and its forward P/E is about 5x versus 21x for Credo. The article says Sandisk has a better chance of outperforming in 2027 because memory supply is tight, with the main risk being that supply catches up to demand and pressures selling prices.
- Apple Forecast Tops Estimates, Disappoints Investors
Apple forecast holiday-quarter growth of 7% to 10%, above Wall Street's consensus of 6.1%, but investors were underwhelmed even though the shares have risen in recent months. Demand for the iPhone Duo is running ahead of supply, and management cited sharply higher component costs, with memory pricing still an issue. The latest quarter beat expectations on total revenue and iPhone sales, but wearables, home products, accessories and iPad fell short. Greater China revenue came in about $1 billion below consensus, yet CEO John Ternus said Apple is gaining market share, citing third-party data showing it has the top three handsets in that market.
- Why AMD Stock Is In Focus Before Q3 Earnings And AI Partnership Updates
Partners Meta, Vultr and LeadDesk have highlighted new deployments of AMD EPYC processors, Instinct GPUs, Helios rackscale systems and ROCm software in large AI training, inference and conversational workloads. The article says these collaborations embed AMD technology deeply in customer infrastructure, which can influence utilization, product mix and long-term demand visibility. However, the stock still carries a rich P/E multiple and relies on higher-risk funding for its growth commitments. The most cautious analysts warn that if infrastructure spending cools, the path to US$117.6 billion in revenue and US$31.5 billion in earnings by 2029 could look stretched.
- Ringgit opens slightly higher amid hopes of US - Iran talks progress
The ringgit opened marginally higher against the US dollar on Tuesday as diplomatic talks between Washington and Tehran showed signs of progress. Bank Muamalat Malaysia's chief economist Dr Mohd Afzanizam Abdul Rashid said the talks could lead to reopening the Straits of Hormuz, and Brent crude fell 8.12% to US$104.21 per barrel. Lower yields at the latest US three- and six-month Treasury bill auctions suggested the odds of a rate hike had eased. He noted the West Asia situation remains fluid and expects the ringgit to trade in a narrow range as sentiment stays cautious.
- 97-Year-Old Sues 'Toy Story' Star Over 58% Gold Markups As Bankrupt Dealer Owes Customers $49 Million
Norman and Sheila Greenberg, aged 97 and 85, say former Disney star Erik von Detten persuaded them to put $2.15 million of their retirement savings into overpriced gold coins worth about $1.36 million at the time. They have sued von Detten and Rosland Capital for financial elder abuse, fraud and breach of fiduciary duty. Rosland, a TV-advertised precious metals dealer, filed for Chapter 11 bankruptcy on July 2 and owes customers $49 million for metals they paid for but never received. The unsecured creditors' committee wants von Detten's records, arguing he played an instrumental part in the company's collapse, and has subpoenaed records from founder Marin Aleksov and custodian Goldstar Trust Company. The article notes that gold has since more than doubled in price.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.