Oracle Set to Release Quarterly Results - Investors' Attention Focused on Billions Spent on AI

As part of the quarterly earnings season, investors' attention on Thursday will be focused on Oracle's results. The American technology company will publish its financial report after the stock market close.

Oracle has recently been significantly increasing its investments in the development of artificial intelligence infrastructure. The company is trying to rapidly expand its cloud infrastructure and compete with Microsoft and Amazon by capitalizing on the opportunities created by growing demand for AI.

Oracle has already signed major agreements with tech giants, including Meta Platforms and OpenAI, the creator of ChatGPT. These partnerships allow the company to significantly increase the scale of its cloud services in the AI direction.

However, the rapid expansion of AI infrastructure requires substantial financial resources. According to Oracle, the company plans to raise approximately $40 billion in 2027 through a combination of debt and equity financing. This significantly exceeds its previous plan, which envisioned issuing $20 billion worth of shares.

In addition, Oracle forecasts that capital expenditures will reach approximately $95 billion in fiscal year 2027. This figure significantly exceeds analysts' forecast of about $67.66 billion.

Oracle's new results will allow investors to assess how quickly the massive spending on AI infrastructure is being converted into real revenue. Strong financial results and a positive outlook could boost interest in Oracle's stock and increase confidence in the company's AI strategy.

On the other hand, if revenue growth fails to justify the increased spending and debt requirements, investors may develop concerns about the efficiency of the company's capital investments.