CLSA Flags AI-Expansion Financing Risk for Oracle With Hold
TL;DR Summary
CLSA initiates Oracle with a Hold, citing potential AI-funding risks as the company may need up to $500 billion by 2030 to finance its AI infrastructure; Oracle carries about $167.4 billion in debt (debt-to-equity ~4.46), and higher financing costs could impact its cloud growth and execution, though it is winning AI-related customers, with a price target of $145 implying roughly 18x FY2028 GAAP earnings.
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