Oracle and Broadcom have taken different approaches to financing their AI chip expansions. Oracle borrows heavily and sells stock to build its own GPU data centers, resulting in large capital expenditures and negative free cash flow, raising concerns about its balance sheet with $236 billion in liabilities. Broadcom, on the other hand, sells custom chips and helps customers find outside financing, maintaining strong free cash flow and paying down debt, though it carries contingent liabilities from guarantees. Oracle's model appears riskier due to cash burn and heavy debt, while Broadcom's exposure is more manageable but depends on external factors like customer stability and potential IPOs. Investors will watch Oracle's December 14 earnings for signs of cash flow improvement and Broadcom's guarantee disclosures for risk clarity.
The contrasting debt strategies of Oracle and Broadcom are reflected in their current market positions on Pluang. As of Oct 12, 2026 20:01 WIB, Oracle trades at USD 140.80 with a market cap of $428.65 billion and a 1-day decline of 0.52%, while Broadcom is priced higher at USD 358.74 but down 0.77% for the day, holding a market cap of $1.73 trillion. These figures highlight the scale and investor sentiment differences as both companies navigate their AI chip financing challenges.
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