Oracle issues $10B bonds to fund AI data centers amid debt concerns
Oracle’s stock fell 4% on November 2 after announcing a $10 billion bond sale to finance AI data center expansion. The move reignited investor concerns about rising leverage, as Oracle’s free cash flow remained negative at $5.4 billion in Q1 FY2027, while interest expenses jumped 55% to $1.4 billion. Analysts at Stephens upgraded Oracle to Overweight with a $213 price target, but the company’s…
Key points
- Oracle sold $10B in bonds to fund AI data center expansion, sparking debt concerns
- Oracle’s free cash flow was negative $5.4B in Q1 FY2027, with interest expenses up 55% to $1.4B
- Microsoft and Amazon fund AI growth internally, avoiding debt reliance seen at Oracle and CoreWeave
CoreWeave, another AI infrastructure provider, saw its shares rise 2% despite its own heavy debt load for GPU cloud capacity. Meanwhile, Microsoft and Amazon—both funding AI growth primarily from internal cash flows—held steady, highlighting a balance sheet advantage over debt-reliant competitors. The NASDAQ Composite dropped 5% in October amid broader concerns over heavy AI spending and negative cash flows, though rising Treasury yields and oil prices later lifted sentiment.
The story so far
10 episodes →- Oracle issues $10B bonds to fund AI data centers amid debt concernsthis story
Oracle Declines 4% as $10 Billion Bond Sale Revives AI Debt Worries; CoreWeave Advances 2%, Microsoft Holds Steady
finance.yahoo.com · 2 November 2026
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