Oracle’s $25 Billion Bet on AI Infrastructure as Co-CEOs Prepare to Execute on $553 Billion Backlog

Oracle issues $25B in bonds and announces $20B share repurchase to fund massive data center expansion for Stargate AI project, with $553B order backlog.

Oracle has turbocharged its push into the artificial intelligence arms race with a $25 billion bond issuance and a $20 billion share repurchase programme, laying the financial groundwork for a sprawling data-centre expansion. The moves come as the company’s stock has more than doubled down on the AI narrative, surging 11% in a single session on heavy volume and delivering a monthly gain of 37.81% in dollar terms.

The financing is earmarked for a cluster of new facilities in Texas, Wisconsin and Michigan, part of a broader $30 billion investment plan that will underpin Oracle’s role in the so-called Stargate AI project. The massive infrastructure venture, which carries a price tag of roughly $300 billion and counts OpenAI as a key partner, is designed to build out supercomputing capacity for the next generation of generative models. Oracle’s cloud infrastructure will serve as the backbone of the effort, and management has confirmed that demand for AI training capacity has already generated some of the largest contracts in the company’s history.

That demand is reflected in a staggering order backlog of $553 billion — a number that has both excited investors and given them pause. On one hand, the backlog validates Oracle’s positioning as a Tier-1 player in the AI infrastructure market. On the other, converting that pipeline into revenue requires the company to build at breakneck speed. Data centres need cooling systems, power connections, and network equipment, and any delay could stretch the timeline for cash conversion. Oracle currently carries long-term debt of roughly $96 billion, with capital expenditures running at about $8.5 billion per quarter and free cash flow occasionally turning negative. The interest coverage ratio of roughly 7.4 suggests debt servicing remains comfortable, but the financing burden is rising.

Institutional investors are showing conviction but also caution. Founders Financial Securities boosted its Oracle stake by more than 20% in the latest quarter, to approximately 15,800 shares, while the consensus analyst rating stands at “Moderate Buy”. However, some fund managers have hedged their bets with put options, wary that execution risk could temper the upside. Technical support near $200.88 helped propel the stock into a higher trading range, and at around 200 euros the shares are trading well above their 200-day moving average. Still, they remain nearly 29% below the 52-week high set in September 2025.

The company has also reshuffled its leadership to manage the accelerating growth. Safra Catz is moving into the role of Executive Vice Chair on the board, while Clay Magouyrk and Mike Sicilia jointly assume the CEO position. The dual-leadership structure is designed to streamline oversight of the expanding cloud and hardware businesses, with both executives placing a heavy emphasis on infrastructure scale. Oracle is simultaneously deepening its multicloud strategy, integrating its database services into AWS, Azure and Google Cloud, a move that helped its cloud infrastructure unit post year-over-year growth of more than 21%.

Analyst sentiment remains firmly in the bull camp. Roughly 81.8% of surveyed analysts rate the stock a buy, and several major firms have recently raised their price targets on improved expectations for the cloud business. The market capitalisation has swelled to roughly $642 billion, and with a trailing price-to-earnings ratio of 40.54, Oracle is no longer valued as a traditional software company but as an AI infrastructure play. Year-to-date, the shares have advanced 15.89% in euro terms, while a more recent snapshot shows a gain exceeding 20% as the rally accelerated.

The next key checkpoint comes on June 16, when Oracle reports its fiscal fourth-quarter results. Analysts are looking for revenue of $19.10 billion and earnings per share of $1.96. The focus will be on updates to Oracle Cloud Infrastructure growth and, most critically, how much of that $553 billion backlog is starting to translate into free cash flow. With a $25 billion bond issue now in place and a $20 billion buyback authorised, Oracle has the firepower to build — but the market will be watching to see if it can deliver on the promises that the Stargate euphoria has priced in.