Oracle shares surge more than 10%, as Investor Day guidance eases AI concerns over cash burn; the company recently announced a series of AI partnerships

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Oracle shares surged by more than 10%, as Investor Day guidance eased AI cash-burn concerns; the company recently announced a series of AI partnerships

BlockBeats reports that October 29, according to BIT stock platform data, Oracle (ORCL) shares closed up approximately 11%, at around 144 USD, adding more than 40000000000 USD to its market capitalization in a single day, marking the largest one-day gain since May, after rising by more than 13%。

intraday. The direct catalyst for the sharp rise was the financial guidance Oracle provided at its Investor Day event. The company offered a clearer path to cash flow, effectively easing the market's core concerns over continued cash burn from AI construction and high debt. The company expects free cash flow to turn positive in the second half of the next fiscal year (FY2028) and reach approximately FY2029 in 30000000000 USD; capital expenditures are expected to peak in FY2027 to 2028 and then begin to decline.

In addition, from now through fiscal 2030, the company's additional financing cap (equity plus debt) is set at 20000000000 USD. Oracle also reiterated its long-term financial targets: fiscal 2030 revenue of at least 225000000000 USD, an adjusted operating margin of no less than 40%, and adjusted EPS of no less than 21 USD. It also reiterated expectations for FY2027 revenue of at least 90000000000 USD and adjusted EPS 8.10 USD. These specific figures directly addressed investors' greatest concern: whether large-scale data center construction can rapidly become self-funding. Shares rose sharply following the release of the guidance.

In addition to the financial guidance, Oracle also announced a series of partnerships during this week's Oracle AI World conference, further reinforcing the positioning of its cloud infrastructure (OCI) as a multi-chip, multi-ecosystem AI platform. These include expanded cooperation with OpenAI, integrating Oracle enterprise applications and data with ChatGPT and launching multiple new products based on OpenAI models; expanded cooperation with Nvidia, under which OCI Superclusters will use the latest Vera Rubin systems at a multi-gigawatt scale; and a partnership with Google, under which OCI will become the first hyperscale cloud provider other than Google to offer Google TPU(starting in 2027).

Oracle also expanded its partnerships with Intel, Cerebras, and Snowflake. These measures not only broaden OCI's hardware options and reduce reliance on a single supplier, but also more closely integrate enterprise applications, data, and AI, helping attract more AI training and inference workloads.

Overall, Oracle's Investor Day provided greater clarity on its medium- to long-term cash-flow and financing path, while the recent rollout of AI partnerships jointly drove this notable rebound. The market will continue to monitor its capital-expenditure pace, progress in converting orders, and whether cash flow turns positive as planned.