Oracle to Double AI Capex to $55.7B, Deploy 50,000 GPUs for Data Center Expansion
ORCL sits 34% above its 52-week low of $134.57.
Summary
Oracle reported Q4 revenue of $19.2 billion, largely in line with prior announcements. The company plans to more than double its fiscal year 2026 capital expenditure to approximately $55.7 billion for AI data center expansion, with fiscal year 2027 capex guided at $70 billion. This aggressive investment includes deploying 50,000 Instinct MI450 GPUs. This massive capital commitment caused free cash flow to swing negative by $23.7 billion, signaling a significant short-term financial strain despite the long-term strategic pivot towards AI cloud services. This follows recent news of a $300 billion cloud deal with OpenAI and previous reports of challenges in financing Oracle's AI build-out.
At the time of this announcement, ORCL was trading at $180.89 on NYSE in the Technology sector, with a market capitalization of approximately $578.8B. The 52-week trading range was $134.57 to $345.72. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.