Oracle (ORCL) Earnings Set to Address Data Center Funding Questions

Core Viewpoint - Oracle Corporation is currently viewed as a compelling investment opportunity amid long-term AI growth, despite a recent stock pullback [1][4]. Group 1: Stock Performance - Oracle shares have decreased by 34% from their peak on September 10, primarily due to investor concerns regarding capital expenditure for data center expansion and financing capabilities [2]. - Mizuho maintains an "Outperform" rating on Oracle with a price target of $400.00, suggesting confidence in the stock's recovery [1]. Group 2: Demand and Supply Dynamics - The demand for high-density AI is currently outpacing supply, with GPU deployments being monetized within weeks, indicating strong market potential for Oracle [3]. - Mizuho anticipates that Oracle will utilize financing structures such as vendor financing and capital leases to manage upfront costs and limit new debt [3]. Group 3: Upcoming Financial Results - Oracle's second-quarter results are scheduled for December 10, and analysts expect these results to provide clarity on the company's data center funding strategy, which may alleviate recent investor concerns [4]. - The upcoming financial print is expected to be solid, reinforcing the view that the current stock pullback represents a good entry point for investors [4].