Oracle’s stock declines as investors react to $70 billion AI infrastructure spending funded by $40 billion in debt and equity.
Oracle’s shares have fallen 37% year-to-date as investors grow wary of the company’s aggressive AI infrastructure spending. The tech giant plans to allocate up to $70 billion by fiscal 2027, raising concerns over its financing strategy.
Management disclosed plans to raise $40 billion through debt and equity, including a $20 billion share sale. Oracle already took on $43 billion in debt in fiscal 2026, fueling skepticism about its ability to generate returns from AI investments.
Investor unease reflects broader market doubts about the profitability of large-scale AI spending, particularly amid rising debt levels.