Oracle secured a nearly $7 billion contract with the U.S. Department of Defense to supply on-premises software for military branches, intelligence agencies, and the Coast Guard over the next decade. This deal highlights Oracle's continued role in government tech despite investor concerns about its AI growth prospects and rising debt from AI data center investments. The contract also reflects Oracle's longstanding ties with the U.S. government and its strategic focus on AI infrastructure. Despite a 38% stock decline this year, Oracle's cloud revenue surged 47%, driven by AI computing demand.
The AI-driven stock rally in 2026, initially led by semiconductor companies, is expanding to cloud infrastructure, cybersecurity, and software sectors. ETFs like First Trust Cloud Computing (SKYY), First Trust Nasdaq Cybersecurity (CIBR), and iShares...
Yields on bonds climbed this week after Alphabet increased its capital expenditure forecast for AI development, sparking fears that other major tech companies like Amazon and Meta will follow. Fixed-income investors are demanding higher credit spread...
Leading AI-focused tech giants like Alphabet, Meta, Amazon, Oracle, and Microsoft have seen their stock prices decline since April 2023, with Oracle dropping over 31%. The main reason is soaring capital expenditure (capex) on AI development, which is...
Moody's warns that the massive investment in AI infrastructure by tech giants like Alphabet, Microsoft, Amazon, and Meta is eroding their free cash flow and increasing balance-sheet risks. These companies are shifting from asset-light to asset-heavy ...
Oracle is currently investing heavily in data centers and AI, which has led to temporary negative free cash flow and borrowing. Despite market skepticism, these moves are typical for companies building physical assets and focusing on data, Oracle's c...
