Oracle Secures $67 B AI Deals, Plans $70 B Capex While Stock Drops 21%
CRM•Oracle signed $67 billion in AI infrastructure contracts last quarter, swelling its backlog to $638 billion and driving 93% growth in Cloud Infrastructure revenue. Its stock has slid 21% over the past month (53% below its 52-week high), trades at a 27.9 P/E, and plans $70 billion capex funded by $40 billion in debt and equity.
1. AI Infrastructure Contracts and Backlog
Oracle signed $67 billion in AI infrastructure contracts in the most recent quarter, boosting its remaining performance obligations to $638 billion and underlining strong enterprise demand for its cloud services.
2. Stock Performance and Valuation
Despite record contract wins, Oracle’s share price has dropped 21% over the past month and sits 53% below its 52-week high, trading at a 27.9 P/E ratio and 7.1 price-to-sales multiple, reflecting investor skepticism over its growth prospects.
3. OCI Growth and Funding Strategy
Oracle’s Cloud Infrastructure revenue rose 93% year-over-year, but management plans a net $70 billion capital expenditure for the next fiscal year, to be funded by approximately $40 billion of debt and equity issuance, increasing leverage to seize AI market opportunities.
