Oracle’s $95B AI Capex Plan Sends SAP Shares Down Over 4%
SAP•SAP shares fell over 4% following Oracle’s announcement of up to $95 billion in fiscal 2027 capital expenditure, including plans to recoup $25 billion from customers and secure $40 billion in financing. This spending surge underscores intensifying AI infrastructure competition that could pressure SAP’s own investment commitments and margins.
1. SAP Shares Slide Over 4%
SAP shares fell over 4% in early trading as investors reacted to Oracle’s fiscal 2027 capital expenditure update rather than any fresh SAP-specific developments.
2. Oracle Plans $95B AI Investment
Oracle outlined plans for up to $95 billion in capital spending next fiscal year, committing roughly $70 billion internally and expecting $25 billion in customer repayments, well above the $67.7 billion analysts forecast.
3. Financing and Margin Outlook
The company intends to secure nearly $40 billion through debt and equity issuance, including a $20 billion at-the-market share offering, while warning of gross margin compression during its accelerated data-centre build-out.
4. Implications for SAP’s Competitive Position
With major data-centre deals in place with Meta Platforms and OpenAI, Oracle’s aggressive investment strategy raises the bar for AI infrastructure spending and could force SAP to ramp up its own capital commitments to stay competitive.
