OpenAI has increased its planned spending on compute infrastructure to $750 billion by 2030, a 25% rise from earlier estimates, yet it still reports a significant capacity shortfall. This massive demand highlights the strain on suppliers like Oracle, which holds a $638 billion backlog but faces cash flow challenges with negative free cash flow and rising liabilities. Oracle plans to raise $40 billion in 2027 to fund this growth, while other players like CoreWeave and NVIDIA also report supply constraints. The situation underscores a critical supply-demand imbalance in AI infrastructure, making Oracle's ability to convert backlog into cash flow a key investor focus in upcoming earnings reports.
Ray Dalio cautions that stocks have limited room for error as rising bond yields narrow the advantage of equities over bonds. He highlights that AI companies are burning cash rapidly, creating liquidity challenges despite strong earnings, with some f...
Jim Cramer emphasized the value of dividend stocks like Home Depot during recent AI stock selloffs, noting that despite his personal dislike for Home Depot, its steady dividends helped stabilize his portfolio. While AI stocks like Oracle and Broadcom...
CoreWeave carries $35.6 billion in debt and has negative free cash flow, but strong demand for its AI computing capacity and pricing power justify continued investment. The company reported a 46% increase in revenue backlog to $104 billion and 112.3%...
Prediction market Kalshi now sees a 75% chance that more than 5,100 artificial intelligence data centers will be planned or operating in the U.S. before 2027, up from 60% two weeks ago. This growth is happening amid increasing public opposition due t...
Oracle's stock is near a 52-week low despite strong quarterly results and a growing cloud backlog valued at $664 billion in remaining performance obligations. The company reported a 29.6% revenue increase and raised its fiscal 2027 EPS guidance, sign...
