Oracle Shares Rise Nearly 2% on Tuesday as Investors Return to Big Tech

Oracle Corp. shares rose nearly 2% on Tuesday, weeks ahead of its latest earnings release, as investors refocused on large-cap technology stocks despite lingering concerns over the company's aggressive AI infrastructure spending.

Oracle's AI Buildout Keeps Cash Flow in Focus

Technology stocks rose 0.9%, and the S&P 500 gained 0.3%, helping Oracle outperform both the sector and the broader market.

Investor attention remains fixed on the scale of Oracle's AI infrastructure expansion and its potential impact on cash flow.

Oracle has guided for capital expenditures of up to $95 billion in fiscal 2027, alongside future data center lease commitments of roughly $260 billion, with negative free cash flow.

Scrutiny also surrounds Project Jupiter, with reports that a natural gas pipeline serving the project in New Mexico has been delayed by six months, pushing completion to February 2027. Oracle said the data center project itself remains on schedule with partners.

Burry Questions AI Infrastructure Spending

"The Big Short" investor Michael Burry said he added a short position around $152, citing the AI infrastructure boom that could ultimately lead to an oversupply of computing capacity in the market.

Broader market conditions remained supportive on Tuesday, with the Nasdaq up 0.65% and the technology sector leading all 11 sectors with a gain of 0.94%. However, Oracle's planned infrastructure spending remains a key stock-specific issue for investors.

Earnings and Analyst Outlook

The countdown begins: Oracle Corp will report earnings on September 8, 2026.

EPS estimate: $1.67

Revenue estimate: $19.13 billion

Valuation: P/E ratio of 24.4x

Analyst consensus and recent moves: The stock carries a Buy rating with an average price target of $258.50. Recent analyst actions include:

UBS: Buy

CLSA: Initiated coverage with Hold

Bernstein: Outperform

Top ETF Exposure

iShares Expanded Tech-Software Sector ETF: Weighting of 5.87%

First Trust NASDAQ Technology Dividend Index Fund: Weighting of 5.28%

FT Vest Technology Dividend Target Income ETF: Weighting of 5.30%

Significance: Given ORCL's heavy weighting in these funds, any significant inflows or outflows from these ETFs could trigger automatic buying or selling of the stock.

Price Action

ORCL share activity: Oracle stock rose 1.87% on Tuesday to close at $145.11.