Strategist Says Oracle Should Ramp Up AI Capital Spending After Earnings Beat

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Fundstrat economic strategist Hardika Singh said Oracle should increase its capital spending beyond current plans to capture surging AI demand, speaking on Yahoo Finance's Morning Brief after the company's latest earnings beat. Singh said Oracle's capex for fiscal 2028 and 2029 may not be enough and that the company needs to build out more data centers and infrastructure, adding that the roughly 70 billion dollars planned for the year ending next May will easily be passed. She dismissed free cash flow concerns, noting Oracle still generates plenty of revenue and can raise debt, with investors still clamoring for its debt even as spreads widen. Singh acknowledged Oracle will pay more to borrow than hyperscalers like Google, Meta and Amazon, some of which have moved toward negative free cash flow, and that shifting from cash to debt funding means that debt eventually comes due.

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Oracle Corporation
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Strategist says Oracle should ramp AI capex beyond its ~$70B plan after an earnings beat, citing strong AI demand and easy debt access.

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