1 day ago
By Patturaja Murugaboopathy
July 29 (Reuters) - Major U.S. technology companies are borrowing heavily as they ramp up spending on their artificial intelligence buildout, and at steadily higher yields as investors become more selective about absorbing the growing supply.
Amazon, Alphabet, Meta Platforms and Oracle issued about $194 billion of bonds in 2026 through July 7, up 79% from roughly $108 billion in all of 2025, according to a Reuters ******* ysis of LSEG data.
Goldman Sachs expects bond issuance by the five hyperscalers, including Microsoft Corp, to reach roughly $250 billion this year and $400 billion in 2027.
The added supply has led to widening borrowing spreads over risk-free rates for these investment-grade firms across major maturity buckets.
#roughly #murugaboopathy
July 29 (Reuters) - Major U.S. technology companies are borrowing heavily as they ramp up spending on their artificial intelligence buildout, and at steadily higher yields as investors become more selective about absorbing the growing supply.
Amazon, Alphabet, Meta Platforms and Oracle issued about $194 billion of bonds in 2026 through July 7, up 79% from roughly $108 billion in all of 2025, according to a Reuters ******* ysis of LSEG data.
Goldman Sachs expects bond issuance by the five hyperscalers, including Microsoft Corp, to reach roughly $250 billion this year and $400 billion in 2027.
The added supply has led to widening borrowing spreads over risk-free rates for these investment-grade firms across major maturity buckets.
#roughly #murugaboopathy
2 days ago
By Amanda Cooper
July 29 (Reuters) - Shares in companies driving the AI boom have been under pressure for weeks. Now their bonds are coming under strain too, pushing up the cost of insuring debt issued by companies such as Oracle, Nvidia and Apple against default.
The move reflects growing concern among investors about when the billions of dollars being poured into artificial intelligence will generate returns.
Technology companies have raised billions of dollars in debt this year to fund AI investments, with firms including Nvidia tapping bond markets for the first time. But the cost of the AI build-out is so high that even blockbuster earnings have failed to reassure some investors about the durability of future returns.
Demand for AI-linked credit default swaps (CDS), a form of insurance against default that gained prominence during the 2008 financial crisis, has surged.
#Companies #cost #billions #dollars
July 29 (Reuters) - Shares in companies driving the AI boom have been under pressure for weeks. Now their bonds are coming under strain too, pushing up the cost of insuring debt issued by companies such as Oracle, Nvidia and Apple against default.
The move reflects growing concern among investors about when the billions of dollars being poured into artificial intelligence will generate returns.
Technology companies have raised billions of dollars in debt this year to fund AI investments, with firms including Nvidia tapping bond markets for the first time. But the cost of the AI build-out is so high that even blockbuster earnings have failed to reassure some investors about the durability of future returns.
Demand for AI-linked credit default swaps (CDS), a form of insurance against default that gained prominence during the 2008 financial crisis, has surged.
#Companies #cost #billions #dollars
2 days ago
Night View Capital, an investment management firm, released its second-quarter 2026 investor letter. The letter highlights that AI is a transformative force, comparable to electricity due to its industry-wide impact. A copy of the letter can be downloaded here. Although fears about the software sector have led to significant declines in stock prices, the letter argues that AI integration will ultimately benefit many companies. They recognize that some software firms may experience temporary slowdowns, but most will adapt and succeed by embracing AI, citing advantages like systems of record, high switching costs, entrenched distribution, and rapid AI adoption. The sharp decline in software valuations appears to be an overreaction rather than a sign of industry failure. Nightview believes the so-called "software panic of 2026" is temporary, and resilient businesses will adapt and flourish in the age of AI. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Night View Capital highlighted Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) is a leading global provider of products and services that enable enterprise information technology environments across multiple industries. On July 27, 2026, Oracle Corporation (NYSE:ORCL) closed at $119.90 per share, reflecting a market capitalization of $345.37 billion. Oracle Corporation (NYSE:ORCL) posted a one-month return of -18.18%, and its shares lost 52.04% over the past 52 weeks.
Night View Capital stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2026 investor update:
"Oracle Corporation (NYSE:ORCL) sits underneath a stunning amount of the world's data and has become one of the more important landlords of AI computing infrastructure. The demand for its cloud has been remarkable. That strength is also why we trimmed the position modestly, harvesting some of a strong run to fund ideas where we saw more room ahead."
Oracle Corporation (NYSE:ORCL) ranks 40 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 115 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, up from 111 in the previous quarter. While we acknowledge the risk and potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Oracle Corporation (NYSE:ORCL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
#letter #software
In its Q2 2026 investor letter, Night View Capital highlighted Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) is a leading global provider of products and services that enable enterprise information technology environments across multiple industries. On July 27, 2026, Oracle Corporation (NYSE:ORCL) closed at $119.90 per share, reflecting a market capitalization of $345.37 billion. Oracle Corporation (NYSE:ORCL) posted a one-month return of -18.18%, and its shares lost 52.04% over the past 52 weeks.
Night View Capital stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2026 investor update:
"Oracle Corporation (NYSE:ORCL) sits underneath a stunning amount of the world's data and has become one of the more important landlords of AI computing infrastructure. The demand for its cloud has been remarkable. That strength is also why we trimmed the position modestly, harvesting some of a strong run to fund ideas where we saw more room ahead."
Oracle Corporation (NYSE:ORCL) ranks 40 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 115 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, up from 111 in the previous quarter. While we acknowledge the risk and potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Oracle Corporation (NYSE:ORCL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
#letter #software
2 days ago
The biggest companies leading the artificial intelligence infrastructure build-out have said they expect hundreds of billions of dollars in capital expenditures through 2026. That trend is only set to accelerate and will be funded increasingly with debt, according to Goldman Sachs.
"While the exact magnitude and mix of future debt issuance from the hyperscalers is uncertain, our review of management commentary leaves us expecting a growing role for debt financing in the AI buildout in the years ahead," credit strategists led by Amanda Lynam said in a research note this week.
A hyperscaler is a large tech company that builds and operates massive data center infrastructure for computing, storage, and AI processing.
Over the past year and a half, capital expenditures from the leading hyperscalers — Meta (META), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Oracle (ORCL) — have boomed, as those companies have entered into an arms race focused on the build-out of vast infrastructure underpinning AI development.
In 2025, the companies collectively reported $405 billion in capex. By year end for 2026, that figure is expected to reach $750 billion, per Goldman Sachs, before nearing $1.2 trillion in 2027.
#leading
"While the exact magnitude and mix of future debt issuance from the hyperscalers is uncertain, our review of management commentary leaves us expecting a growing role for debt financing in the AI buildout in the years ahead," credit strategists led by Amanda Lynam said in a research note this week.
A hyperscaler is a large tech company that builds and operates massive data center infrastructure for computing, storage, and AI processing.
Over the past year and a half, capital expenditures from the leading hyperscalers — Meta (META), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Oracle (ORCL) — have boomed, as those companies have entered into an arms race focused on the build-out of vast infrastructure underpinning AI development.
In 2025, the companies collectively reported $405 billion in capex. By year end for 2026, that figure is expected to reach $750 billion, per Goldman Sachs, before nearing $1.2 trillion in 2027.
#leading
3 days ago
SURPRISE, ARIZONA - MARCH 11: Osleivis Basabe #39 of the San Francisco Giants hits a single against the Kansas City Royals during the third inning of the spring training game at Surprise Stadium on March 11, 2026 in Surprise, Arizona. (Photo by Christian Petersen/Getty Images) Getty
SAN FRANCISCO, CALIFORNIA - JULY 24: Casey Schmitt #10 of the San Francisco Giants hits a three-run home run in the bottom of the third inning against the Los Angeles Angels at Oracle Park on July 24, 2026 in San Francisco, California. (Photo by Lachlan Cunningham/Getty Images) Getty
The San Francisco Giants are currently taking on the Milwaukee Brewers (at home). SF won 3-0 over the Brewers on Monday to improve to 45-61.
It hasn't been the season anyone in the Giants organization has hoped for, but over the last two months, it's a good chance to see what the future holds and what young players can bring to the table. Basically, what I mean is roster transactions don't stop, and during the Brewers series, the Giants are promoting a 25-year-old infielder in the latest transaction.
More MLB on Heavy: Los Angeles Dodgers Demote 24-Year-Old Player to Pave Way for Kike Hernandez During Mariners Series
#surprise
SAN FRANCISCO, CALIFORNIA - JULY 24: Casey Schmitt #10 of the San Francisco Giants hits a three-run home run in the bottom of the third inning against the Los Angeles Angels at Oracle Park on July 24, 2026 in San Francisco, California. (Photo by Lachlan Cunningham/Getty Images) Getty
The San Francisco Giants are currently taking on the Milwaukee Brewers (at home). SF won 3-0 over the Brewers on Monday to improve to 45-61.
It hasn't been the season anyone in the Giants organization has hoped for, but over the last two months, it's a good chance to see what the future holds and what young players can bring to the table. Basically, what I mean is roster transactions don't stop, and during the Brewers series, the Giants are promoting a 25-year-old infielder in the latest transaction.
More MLB on Heavy: Los Angeles Dodgers Demote 24-Year-Old Player to Pave Way for Kike Hernandez During Mariners Series
#surprise
3 days ago
CHICAGO, ILLINOIS - JUNE 05: Jonah ***** #53 of the San Francisco Giants runs to first base against the Chicago Cubs at Wrigley Field on June 05, 2026 in Chicago, Illinois. (Photo by Michael Reaves/Getty Images)
PHOENIX, ARIZONA - JUNE 29: Jonah ***** #53 of the San Francisco Giants lays down a fielder's choice bunt during the fifth inning of the MLB game against the Arizona Diamondbacks at Chase Field on June 29, 2026 in Phoenix, Arizona. (Photo by Christian Petersen/Getty Images)
PHOENIX, ARIZONA - JUNE 30: Jonah ***** #53 of the San Francisco Giants in action during the MLB game at Chase Field on June 30, 2026 in Phoenix, Arizona. (Photo by Christian Petersen/Getty Images)
SAN FRANCISCO, CALIFORNIA - JULY 27: Willy Adames #2 and Luis Arraez #1 of the San Francisco Giants celebrate defeating the Milwaukee Brewers 3-0 at Oracle Park on July 27, 2026 in San Francisco, California. (Photo by Thearon W. Henderson/Getty Images)
On Tuesday night, the San Francisco Giants are back at Oracle Park for the second game of their series with the Milwaukee Brewers.
#june #images #field
PHOENIX, ARIZONA - JUNE 29: Jonah ***** #53 of the San Francisco Giants lays down a fielder's choice bunt during the fifth inning of the MLB game against the Arizona Diamondbacks at Chase Field on June 29, 2026 in Phoenix, Arizona. (Photo by Christian Petersen/Getty Images)
PHOENIX, ARIZONA - JUNE 30: Jonah ***** #53 of the San Francisco Giants in action during the MLB game at Chase Field on June 30, 2026 in Phoenix, Arizona. (Photo by Christian Petersen/Getty Images)
SAN FRANCISCO, CALIFORNIA - JULY 27: Willy Adames #2 and Luis Arraez #1 of the San Francisco Giants celebrate defeating the Milwaukee Brewers 3-0 at Oracle Park on July 27, 2026 in San Francisco, California. (Photo by Thearon W. Henderson/Getty Images)
On Tuesday night, the San Francisco Giants are back at Oracle Park for the second game of their series with the Milwaukee Brewers.
#june #images #field
3 days ago
It's amazing how the free cash flow line has meant wildly different things for Apple (AAPL) and Oracle (ORCL) investors this year.
Call it an Investing 101 reminder: Cash is king.
Quick insight: With tech investors laser-focused on capex, free cash flow has emerged as a major driver of share prices this year.
The latest example: Alphabet (GOOGL) reported its first negative free cash flow quarter, and the stock was hammered last week after its earnings. Free cash flow could remain negative for Alphabet in the near-term, based on guidance from its earnings call.
As for Apple, it has generated about $129 billion in trailing 12-month free cash flow. On the other hand, Oracle has seen a $24 billion outflow. It's not that Apple isn't investing in AI, but Oracle's business model requires it to take bigger financial swings. In this case, those swings are being funded by new debt.
#Apple #investors
Call it an Investing 101 reminder: Cash is king.
Quick insight: With tech investors laser-focused on capex, free cash flow has emerged as a major driver of share prices this year.
The latest example: Alphabet (GOOGL) reported its first negative free cash flow quarter, and the stock was hammered last week after its earnings. Free cash flow could remain negative for Alphabet in the near-term, based on guidance from its earnings call.
As for Apple, it has generated about $129 billion in trailing 12-month free cash flow. On the other hand, Oracle has seen a $24 billion outflow. It's not that Apple isn't investing in AI, but Oracle's business model requires it to take bigger financial swings. In this case, those swings are being funded by new debt.
#Apple #investors
3 days ago
Charlie Munger, Berkshire Hathaway's (BRK.A) (BRK.B) longtime vice chairman and Warren Buffett's closest business partner, never had much patience for excuses when it came to building wealth.
His most famous piece of financial advice wasn't polished or inspirational. It was blunt.
Why This **** yst Is Betting AMD Stock Can Hit $1,250 in the Next Year
A $7 Billion Reason to Buy Oracle Stock Now
Dear Bloom Energy Stock Fans, Mark Your Calendars for July 28
#Stock #munger #analyst
His most famous piece of financial advice wasn't polished or inspirational. It was blunt.
Why This **** yst Is Betting AMD Stock Can Hit $1,250 in the Next Year
A $7 Billion Reason to Buy Oracle Stock Now
Dear Bloom Energy Stock Fans, Mark Your Calendars for July 28
#Stock #munger #analyst
4 days ago
San Francisco (45-61) opened a three-game series against Milwaukee (66-40) on Monday. The Giants won the series opener, 3-0, at Oracle Park in San Francisco, California. 35,107 were in attendance.
Two former Vols played in Monday's National League contest.
Drew Gilbert started in center field for the Giants. He went 1-for-3 and singled to right field in the sixth inning. Gilbert was picked off at first base by pitcher Brandon Sproat (3-6).
Garrett Stallings pitched two innings in relief for the Brewers. He recorded one strikeout and 37 pitches, including 19 strikes, against seven batters. The right-handed pitcher allowed one walk.
Stallings played for the Vols from 2017-19. He appeared 52 games, including 35 starts, and pitched 251.1 innings. Stallings recorded 182 strikeouts, two saves and a 16-14 record.
#right
Two former Vols played in Monday's National League contest.
Drew Gilbert started in center field for the Giants. He went 1-for-3 and singled to right field in the sixth inning. Gilbert was picked off at first base by pitcher Brandon Sproat (3-6).
Garrett Stallings pitched two innings in relief for the Brewers. He recorded one strikeout and 37 pitches, including 19 strikes, against seven batters. The right-handed pitcher allowed one walk.
Stallings played for the Vols from 2017-19. He appeared 52 games, including 35 starts, and pitched 251.1 innings. Stallings recorded 182 strikeouts, two saves and a 16-14 record.
#right
4 days ago
SAN FRANCISCO, CALIFORNIA - JULY 27: Matt Chapman #26 of the San Francisco Giants celebrates while trotting around the bases after hitting a solo home run against the New York Mets in the bottom of the fourth inning at Oracle Park on July 27, 2025 in San Francisco, California. (Photo by Thearon W. Henderson/Getty Images)
KANSAS CITY, MISSOURI - SEPTEMBER 21: Matt Chapman #26 of the San Francisco Giants celebrates his home in the sixth inning against the Kansas City Royals at Kauffman Stadium on September 21, 2024 in Kansas City, Missouri. (Photo by Ed Zurga/Getty Images)
SAN FRANCISCO, CALIFORNIA - SEPTEMBER 08: Matt Chapman #26 of the San Francisco Giants trots around the bases after hitting a solo home run against the Arizona Diamondbacks in the bottom of the seventh inning at Oracle Park on September 08, 2025 in San Francisco, California. (Photo by Thearon W. Henderson/Getty Images)
PHOENIX, ARIZONA - MAY 20: Manager Tony Vitello #23 of the San Francisco Giants looks on from the bench against the Arizona Diamondbacks during the third inning at Chase Field on May 20, 2026 in Phoenix, Arizona. Diamondbacks won 6-3. (Photo by Norm Hall/Getty Images)
On Monday night, the San Francisco Giants opened up a series with the Milwaukee Brewers at Oracle Park.
#california #september #arizona #chapman
KANSAS CITY, MISSOURI - SEPTEMBER 21: Matt Chapman #26 of the San Francisco Giants celebrates his home in the sixth inning against the Kansas City Royals at Kauffman Stadium on September 21, 2024 in Kansas City, Missouri. (Photo by Ed Zurga/Getty Images)
SAN FRANCISCO, CALIFORNIA - SEPTEMBER 08: Matt Chapman #26 of the San Francisco Giants trots around the bases after hitting a solo home run against the Arizona Diamondbacks in the bottom of the seventh inning at Oracle Park on September 08, 2025 in San Francisco, California. (Photo by Thearon W. Henderson/Getty Images)
PHOENIX, ARIZONA - MAY 20: Manager Tony Vitello #23 of the San Francisco Giants looks on from the bench against the Arizona Diamondbacks during the third inning at Chase Field on May 20, 2026 in Phoenix, Arizona. Diamondbacks won 6-3. (Photo by Norm Hall/Getty Images)
On Monday night, the San Francisco Giants opened up a series with the Milwaukee Brewers at Oracle Park.
#california #september #arizona #chapman
4 days ago
Warren Buffett stands as one of the most celebrated investors in history. Under his leadership at Berkshire Hathaway beginning in 1965, the investment conglomerate delivered a compound annual gain of 19.7% through 2025, almost double the S&P 500's (SNPINDEX: ^GSPC) 10.5% average annual return over the same period.
That performance turned modest early investments into generational wealth for patient shareholders, validating Buffett's reputation for focusing on long-term value rather than short-term profits.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
One tool the Oracle of Omaha has long employed for gauging the health of the stock market is the aptly named Buffett indicator, which compares the total value of U.S. stocks to gross domestic product (GDP). Its currently elevated reading raises questions about whether stocks are outrunning underlying economic growth and what that could signal for future returns.
The Buffett indicator is a ratio between the aggregate market capitalization of all publicly traded U.S. companies -- typically captured by a broad index such as the Wilshire 5000 -- and nominal U.S. GDP. This metric offers a snapshot of how large the stock market has become relative to the size of the economy that ultimately supports corporate profits.
#total
That performance turned modest early investments into generational wealth for patient shareholders, validating Buffett's reputation for focusing on long-term value rather than short-term profits.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
One tool the Oracle of Omaha has long employed for gauging the health of the stock market is the aptly named Buffett indicator, which compares the total value of U.S. stocks to gross domestic product (GDP). Its currently elevated reading raises questions about whether stocks are outrunning underlying economic growth and what that could signal for future returns.
The Buffett indicator is a ratio between the aggregate market capitalization of all publicly traded U.S. companies -- typically captured by a broad index such as the Wilshire 5000 -- and nominal U.S. GDP. This metric offers a snapshot of how large the stock market has become relative to the size of the economy that ultimately supports corporate profits.
#total
7 days ago
Ironvine Capital Partners, an investment management company, released its Q2 2026 investor letter. A copy of the letter can be downloaded here. The letter emphasizes the vital role of AI adoption in capital markets, highlighting a projected $7 trillion in new debt issuance by 2029 due to increased AI computing investments by hyperscale companies. This trend presents both risks and opportunities. The firm has shifted away from semiconductors during the quarter, as they require 2027 or 2028 spending levels for sustainable returns. The Ironvine Concentrated fund reported a year-to-date return of 11.02% (net), outperforming the S&P 500 Index's 10.21% return. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Ironvine Capital Partners highlighted SAP SE (NYSE:SAP). Headquartered in Walldorf, Germany, SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. On July 22, 2026, SAP SE (NYSE:SAP) closed at $148.75 per share. One-month return of SAP SE (NYSE:SAP) was -2.51%, and its shares lost 49.41% over the past 52 weeks. SAP SE (NYSE:SAP) has a market capitalization of $175.9 billion.
Ironvine Capital Partners stated the following regarding SAP SE (NYSE:SAP) in its Q2 2026 investor update:
"Over the last five decades SAP SE (NYSE:SAP) has become the leading provider of ERP software for many of the world's largest, most supply chain-intensive companies. SAP counts 98 of the Fortune 100 as customers, with approximately 70% of revenue derived from large enterprises. Across much of this market the company operates in a duopoly with Oracle, although in certain niches it is the only practical solution. Its software integrates procurement, manufacturing, inventory, sales, human resources, and financial reporting into a single operating platform for the business.
Over time, SAP systems permeate customer operations, often with extensive customization reflecting company-specific workflows, regulatory requirements, and accumulated business knowledge. For example, Boeing relies on SAP to coordinate the ******* embly of airplanes containing tens of thousands of components, sourced from thousands of suppliers. If one part isn't where it's supposed to be, a $50 million plane doesn't move forward. Every component must be tracked, certified, and correctly installed with an auditable record. Boeing's SAP environment contains decades of custom code integrated with its supply chain to provide this digital paper trail…" (Click here to read the full text)
#NYSE #partners #letter #here
In its Q2 2026 investor letter, Ironvine Capital Partners highlighted SAP SE (NYSE:SAP). Headquartered in Walldorf, Germany, SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. On July 22, 2026, SAP SE (NYSE:SAP) closed at $148.75 per share. One-month return of SAP SE (NYSE:SAP) was -2.51%, and its shares lost 49.41% over the past 52 weeks. SAP SE (NYSE:SAP) has a market capitalization of $175.9 billion.
Ironvine Capital Partners stated the following regarding SAP SE (NYSE:SAP) in its Q2 2026 investor update:
"Over the last five decades SAP SE (NYSE:SAP) has become the leading provider of ERP software for many of the world's largest, most supply chain-intensive companies. SAP counts 98 of the Fortune 100 as customers, with approximately 70% of revenue derived from large enterprises. Across much of this market the company operates in a duopoly with Oracle, although in certain niches it is the only practical solution. Its software integrates procurement, manufacturing, inventory, sales, human resources, and financial reporting into a single operating platform for the business.
Over time, SAP systems permeate customer operations, often with extensive customization reflecting company-specific workflows, regulatory requirements, and accumulated business knowledge. For example, Boeing relies on SAP to coordinate the ******* embly of airplanes containing tens of thousands of components, sourced from thousands of suppliers. If one part isn't where it's supposed to be, a $50 million plane doesn't move forward. Every component must be tracked, certified, and correctly installed with an auditable record. Boeing's SAP environment contains decades of custom code integrated with its supply chain to provide this digital paper trail…" (Click here to read the full text)
#NYSE #partners #letter #here
7 days ago
Deep Sail Capital Partners, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund significantly outperformed both of its benchmarks, the Russell 2000 Mid Cap Growth Index and the Russell 2000 Index, returning 41.6% net of fees while averaging 88% net long exposure. YTD, the fund returned 16.5% net of fees. long portfolio significantly outperformed both benchmarks, while the short portfolio was mixed in the quarter. The letter states that there was a notable performance push in Q1, which was reflected in Q2, driven by both the Iran War and idiosyncratic impacts on positions in the fund. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Deep Sail Capital Partners highlighted Celestica Inc. (NYSE:CLS). Celestica Inc. (NYSE:CLS) is a leading technology and electronic manufacturing services company that offers supply chain solutions across multiple countries. On July 22, 2026, Celestica Inc. (NYSE:CLS) closed at $335.50 per share, reflecting a market capitalization of $38.57 billion. Celestica Inc. (NYSE:CLS) posted a one-month return of -7.17%, while its shares gained 104.60% over the past 52 weeks.
Deep Sail Capital Partners stated the following regarding Celestica Inc. (NYSE:CLS) in its Q2 2026 investor update:
"Celestica Inc. (NYSE:CLS) has transitioned from its legacy roots as an IBM captive manufacturer to become a design and technology integration leader within the AI and cloud infrastructure ***** e. Celestica was founded in 1994 as a subsidiary of IBM Canada. It was subsequently acquired by PE, and then IPOed in the late 1990s. The company's strategy from there was an acquisition model for the next two decades, acquiring various electronics and computer peripherals manufacturing and supply companies, highly tied to major OEMs like IBM, Avaya, and Lucent. At the beginning of the AI boom, the company found itself incredibly well positioned to provide specialized design, operational, and engineering services to large technology companies looking to build data centers or ***** ociated integrated rack systems.
The business segments of Celestica are split into two highly specialized operational segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Within the CCS segment, the company serves enterprise AI companies and the hyperscalers, including Google, Meta, Dell, HPE, IBM, Juniper Networks, and Oracle Corporation, among others. Within the ATS segment, Celestica supports highly complex capital equipment, aerospace, and defense programs for Tier-1 customers such as Applied Materials, Honeywell, Lam Research, and Raytheon..." (Click here to read the full text)
#deep #solutions
In its Q2 2026 investor letter, Deep Sail Capital Partners highlighted Celestica Inc. (NYSE:CLS). Celestica Inc. (NYSE:CLS) is a leading technology and electronic manufacturing services company that offers supply chain solutions across multiple countries. On July 22, 2026, Celestica Inc. (NYSE:CLS) closed at $335.50 per share, reflecting a market capitalization of $38.57 billion. Celestica Inc. (NYSE:CLS) posted a one-month return of -7.17%, while its shares gained 104.60% over the past 52 weeks.
Deep Sail Capital Partners stated the following regarding Celestica Inc. (NYSE:CLS) in its Q2 2026 investor update:
"Celestica Inc. (NYSE:CLS) has transitioned from its legacy roots as an IBM captive manufacturer to become a design and technology integration leader within the AI and cloud infrastructure ***** e. Celestica was founded in 1994 as a subsidiary of IBM Canada. It was subsequently acquired by PE, and then IPOed in the late 1990s. The company's strategy from there was an acquisition model for the next two decades, acquiring various electronics and computer peripherals manufacturing and supply companies, highly tied to major OEMs like IBM, Avaya, and Lucent. At the beginning of the AI boom, the company found itself incredibly well positioned to provide specialized design, operational, and engineering services to large technology companies looking to build data centers or ***** ociated integrated rack systems.
The business segments of Celestica are split into two highly specialized operational segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Within the CCS segment, the company serves enterprise AI companies and the hyperscalers, including Google, Meta, Dell, HPE, IBM, Juniper Networks, and Oracle Corporation, among others. Within the ATS segment, Celestica supports highly complex capital equipment, aerospace, and defense programs for Tier-1 customers such as Applied Materials, Honeywell, Lam Research, and Raytheon..." (Click here to read the full text)
#deep #solutions
8 days ago
Truist upgraded CoreWeave to Buy at $126 as AI spending shifts from model training to inference, sparking a 6% single-name rally on Wednesday.
CRWV's gain diverges sharply from peers NET and ORCL, confirming today's move is ******* yst-driven, not a broad cloud sector re-rating.
CRWV trades near $84, well below the $140 ******* yst consensus target, but a 33% monthly pullback and customer concentration warrant disciplined position sizing.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Snowflake didn't make the cut. Grab the names FREE today.
CoreWeave (NASDAQ:CRWV) shares are climbing in Wednesday morning trading, with CoreWeave stock up 6% to $84.02 after a fresh ******* yst endorsement. The move stands out against a soft tape for cloud infrastructure peers, with Cloudflare (NYSE:NET) shares down 1% to $268.46, Snowflake (NYSE:SNOW) shares down 2% to $265.68, and Oracle (NYSE:ORCL) stock unchanged at $126.50.
#coreweave #analyst #wednesday #peers
CRWV's gain diverges sharply from peers NET and ORCL, confirming today's move is ******* yst-driven, not a broad cloud sector re-rating.
CRWV trades near $84, well below the $140 ******* yst consensus target, but a 33% monthly pullback and customer concentration warrant disciplined position sizing.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Snowflake didn't make the cut. Grab the names FREE today.
CoreWeave (NASDAQ:CRWV) shares are climbing in Wednesday morning trading, with CoreWeave stock up 6% to $84.02 after a fresh ******* yst endorsement. The move stands out against a soft tape for cloud infrastructure peers, with Cloudflare (NYSE:NET) shares down 1% to $268.46, Snowflake (NYSE:SNOW) shares down 2% to $265.68, and Oracle (NYSE:ORCL) stock unchanged at $126.50.
#coreweave #analyst #wednesday #peers
8 days ago
OpenAI has raised its projected spending on computing infrastructure to around $750 billion through 2030, up from roughly $600 billion earlier this year, according to The Wall Street Journal. New deals with cloud-computing providers are driving the higher figure, as OpenAI continues its push to obtain the vast computing resources its AI models require.
On Wednesday, OpenAI said it would invest $20 billion to begin construction on a data center called Project Camellia in Effingham County, Georgia. Unlike its other facilities, where the company leases chip capacity from providers such as Oracle and Amazon Web Services, the Savannah Gateway Industrial Hub site marks OpenAI's first venture as the principal designer and builder of its own data center.
Sachin Katti, OpenAI's vice president of compute strategy, said the company has contracted with utility Georgia Power to receive 3.2 gigawatts of power between 2028 and 2032. OpenAI has already acquired the land for the project and is in the process of selecting a partner to build and operate the site, Katti said.
The company has also hired Brent Mayo, a key figure in building Elon Musk's xAI data center infrastructure, according to the Journal. After departing xAI earlier this year, Mayo had been instrumental in standing up that company's Colossus supercomputer campus in Memphis, where he managed the rapid procurement and commissioning of large-scale AI chip clusters. In the head of data-center build and delivery role, he will be responsible for keeping cloud partners on track with their construction timelines, while also contributing to the new Georgia facility. Mayo reports to Uday Ruddarraju, who was promoted this month to become OpenAI's chief technology officer of computing capacity.
The $750 billion projection represents the latest escalation in a spending trajectory that has drawn scrutiny inside the company. Chief Financial Officer Sarah Friar has privately raised concerns that OpenAI may not be able to honor future computing contracts if revenue growth does not keep pace with commitments. That came after Chief Executive Sam Altman stated publicly that OpenAI intended to spend $1.4 trillion on computing capacity, a figure that unsettled observers; Friar subsequently stepped in to correct the record, telling investors the actual projected outlay through 2030 was approximately $600 billion.
#computing #center #company
On Wednesday, OpenAI said it would invest $20 billion to begin construction on a data center called Project Camellia in Effingham County, Georgia. Unlike its other facilities, where the company leases chip capacity from providers such as Oracle and Amazon Web Services, the Savannah Gateway Industrial Hub site marks OpenAI's first venture as the principal designer and builder of its own data center.
Sachin Katti, OpenAI's vice president of compute strategy, said the company has contracted with utility Georgia Power to receive 3.2 gigawatts of power between 2028 and 2032. OpenAI has already acquired the land for the project and is in the process of selecting a partner to build and operate the site, Katti said.
The company has also hired Brent Mayo, a key figure in building Elon Musk's xAI data center infrastructure, according to the Journal. After departing xAI earlier this year, Mayo had been instrumental in standing up that company's Colossus supercomputer campus in Memphis, where he managed the rapid procurement and commissioning of large-scale AI chip clusters. In the head of data-center build and delivery role, he will be responsible for keeping cloud partners on track with their construction timelines, while also contributing to the new Georgia facility. Mayo reports to Uday Ruddarraju, who was promoted this month to become OpenAI's chief technology officer of computing capacity.
The $750 billion projection represents the latest escalation in a spending trajectory that has drawn scrutiny inside the company. Chief Financial Officer Sarah Friar has privately raised concerns that OpenAI may not be able to honor future computing contracts if revenue growth does not keep pace with commitments. That came after Chief Executive Sam Altman stated publicly that OpenAI intended to spend $1.4 trillion on computing capacity, a figure that unsettled observers; Friar subsequently stepped in to correct the record, telling investors the actual projected outlay through 2030 was approximately $600 billion.
#computing #center #company
8 days ago
The AI boom is forcing some of technology's biggest cash machines to behave more like utilities. On July 22, Reuters reported that Microsoft Corporation (NASDAQ:MSFT), Oracle Corporation (NYSE:ORCL), and three other hyperscalers are expected to spend more on capital expenditures than they generate in combined free cash flow by 2027. From 2025 through 2027, their annual operating cash flow is projected to rise by $340 billion, versus a $534 billion increase in capex. Microsoft and Oracle, however, are not carrying the same risk.
Microsoft showed the squeeze in fiscal Q2. Operating cash flow was $35.8 billion, while capex including finance leases reached $37.5 billion. That does not mean the company burned cash: Microsoft reported $5.9 billion of conventional free cash flow because that measure deducts cash property and equipment purchases, not newly originated finance leases.
Carol Gauthier/Shutterstock.com
Fiscal Q3, however, was stronger. Operating cash flow rose to $46.7 billion and free cash flow reached $15.8 billion, even after $30.9 billion of cash property and equipment spending. Its AI business also passed a $37 billion annual revenue run rate. Microsoft can finance the buildout. The question is whether Azure and Copilot can generate nice returns before expensive GPUs depreciate or become obsolete.
Oracle has a more immediate cash problem. In fiscal 2026, it spent $55.7 billion on capex against $32 billion of operating cash flow, leaving free cash flow at negative $23.7 billion. Demand is real: cloud revenue grew 39% to $34 billion, and remaining performance obligations reached $638 billion. But backlog is not cash. Oracle must construct capacity before much of that revenue arrives, and plans to raise $45 billion to $50 billion through debt and equity.
#Microsoft #fiscal
Microsoft showed the squeeze in fiscal Q2. Operating cash flow was $35.8 billion, while capex including finance leases reached $37.5 billion. That does not mean the company burned cash: Microsoft reported $5.9 billion of conventional free cash flow because that measure deducts cash property and equipment purchases, not newly originated finance leases.
Carol Gauthier/Shutterstock.com
Fiscal Q3, however, was stronger. Operating cash flow rose to $46.7 billion and free cash flow reached $15.8 billion, even after $30.9 billion of cash property and equipment spending. Its AI business also passed a $37 billion annual revenue run rate. Microsoft can finance the buildout. The question is whether Azure and Copilot can generate nice returns before expensive GPUs depreciate or become obsolete.
Oracle has a more immediate cash problem. In fiscal 2026, it spent $55.7 billion on capex against $32 billion of operating cash flow, leaving free cash flow at negative $23.7 billion. Demand is real: cloud revenue grew 39% to $34 billion, and remaining performance obligations reached $638 billion. But backlog is not cash. Oracle must construct capacity before much of that revenue arrives, and plans to raise $45 billion to $50 billion through debt and equity.
#Microsoft #fiscal
9 days ago
Artificial intelligence has reshaped the stock market over the past two years, rewarding companies building the infrastructure behind the next generation of computing. Data centers, chips, power systems, and cloud platforms became the picks-and-shovels businesses of the AI boom. But history has shown that markets eventually separate real earnings power from expensive promises. Companies that spend aggressively during a technology transition can create enormous opportunities—but they can also leave investors questioning whether growth will justify the bill.
Few companies have experienced that shift more dramatically than Oracle (ORCL). After riding the AI wave to an all-time high of $345.72 in September 2025, the database and cloud giant has entered one of the steepest declines in its modern history.
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#market
Few companies have experienced that shift more dramatically than Oracle (ORCL). After riding the AI wave to an all-time high of $345.72 in September 2025, the database and cloud giant has entered one of the steepest declines in its modern history.
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Micron Stock Is Near Bear-Market Territory. Here's Why ASML's Guidance Says Buy the Dip.
#market
9 days ago
Its history in market shocks reveals a pattern of deep falls and long recoveries that every shareholder should understand.
Bloom Energy (BE) stock fell 8.3% on July 20th, a sharp move for any holder. But to understand the risk you are carrying, you have to look past a single session. This is a company at the center of the AI buildout, providing clean, on-site power solutions for data centers, highlighted by a landmark deal with Oracle for its Project Jupiter. The market is weighing that strong demand, which led management to raise its 2026 revenue guidance to a range of $3.4 billion to $3.8 billion, against the significant operational challenge of scaling its manufacturing to meet it.
That recent dip is a minor tremor. The real question for a shareholder is how this stock behaves in a true major market downturn. When the entire market sells off, how far does Bloom Energy fall, and how long does it take to climb back? Can you ride that out?
A 78% Fall During The Covid Crash
When the broad market falls, Bloom Energy stock tends to fall much further. Across the seven major market shocks it has traded through, the stock's average peak-to-trough drop was about 49%, compared to just 17% for the S&P 500. That amplified downside is the core risk.
#Stock #falls #shareholder
Bloom Energy (BE) stock fell 8.3% on July 20th, a sharp move for any holder. But to understand the risk you are carrying, you have to look past a single session. This is a company at the center of the AI buildout, providing clean, on-site power solutions for data centers, highlighted by a landmark deal with Oracle for its Project Jupiter. The market is weighing that strong demand, which led management to raise its 2026 revenue guidance to a range of $3.4 billion to $3.8 billion, against the significant operational challenge of scaling its manufacturing to meet it.
That recent dip is a minor tremor. The real question for a shareholder is how this stock behaves in a true major market downturn. When the entire market sells off, how far does Bloom Energy fall, and how long does it take to climb back? Can you ride that out?
A 78% Fall During The Covid Crash
When the broad market falls, Bloom Energy stock tends to fall much further. Across the seven major market shocks it has traded through, the stock's average peak-to-trough drop was about 49%, compared to just 17% for the S&P 500. That amplified downside is the core risk.
#Stock #falls #shareholder
9 days ago
Just a few months ago, investors were singing Oracle's (ORCL) praises after it reported off-the-charts revenue growth and unveiled a massive backlog. Its Q3 earnings surprised Wall Street, which had ***** umed the tech dinosaur had lost its edge. Fast forward to today, and Oracle's fundamentals remain exceptionally strong. Cloud demand is booming, with the company signing massive AI infrastructure contracts that forecast years of accelerating revenue growth. Yet, the stock tells a different story. ORCL stock is down roughly 36% year-to-date (YTD), touching a new 52-week low of $120.03 yesterday.
The selloff reflects more of investors' concerns over the company's aggressive AI spending rather than the company's long-term prospects. Even Wall Street remains overwhelmingly optimistic, with one ***** yst expecting the stock to surge to $400, which implies a potential 220% upside from current levels.
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#Stock
The selloff reflects more of investors' concerns over the company's aggressive AI spending rather than the company's long-term prospects. Even Wall Street remains overwhelmingly optimistic, with one ***** yst expecting the stock to surge to $400, which implies a potential 220% upside from current levels.
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#Stock
9 days ago
Oracle (NYSE: ORCL) shares have been on a wild ride so far this year. Investors have been left wondering whether it's worth holding on to the tech giant's shares, or if they should avoid the volatile stock altogether.
Oracle is spending a lot of money right now as it builds out more AI infrastructure, which has spooked some shareholders, leading to an Oracle stock sell-off that's left its share price down 37% year to date.
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That drop could represent a good buying opportunity. Here's why.
Oracle is doing what nearly every other major tech company is doing right now -- accelerating its spending on artificial intelligence data centers. But shareholders weren't happy when management said capital expenditures (capex) could reach as high as $70 billion in fiscal 2027, and they really aren't happy with how Oracle plans to raise the money.
#oracle #down #flashing #shares
Oracle is spending a lot of money right now as it builds out more AI infrastructure, which has spooked some shareholders, leading to an Oracle stock sell-off that's left its share price down 37% year to date.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That drop could represent a good buying opportunity. Here's why.
Oracle is doing what nearly every other major tech company is doing right now -- accelerating its spending on artificial intelligence data centers. But shareholders weren't happy when management said capital expenditures (capex) could reach as high as $70 billion in fiscal 2027, and they really aren't happy with how Oracle plans to raise the money.
#oracle #down #flashing #shares
9 days ago
OpenAI's $100B ad revenue target for 2030 is 20 times eMarketer's forecast for the whole chatbot market, threatening Oracle's $75B in AI-linked commitments.
ChatGPT's AI traffic share dropped from 87% to 65% as Alphabet's Gemini gains ground, making projections of chatbot ad dominance harder to justify.
Don't wait: the **** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
One of the load-bearing **** umptions behind the AI investment story just got a hard sanity check, and the numbers do not add up.
According to research firm eMarketer, OpenAI's advertising business is on pace to miss the company's own five-year revenue forecast by roughly 90%. OpenAI has projected $2.5 billion in OpenAI ad revenue in 2026, growing to $100 billion by 2030. eMarketer's data tells a different story: standalone AI chatbots, including ChatGPT, Microsoft Copilot, Google AI Mode, and Amazon's Alexa for Shopping combined, will generate less than $1 billion in ad revenue this year, and just $5.41 billion across the entire market by 2030.
#forecast #gemini #don 't
ChatGPT's AI traffic share dropped from 87% to 65% as Alphabet's Gemini gains ground, making projections of chatbot ad dominance harder to justify.
Don't wait: the **** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
One of the load-bearing **** umptions behind the AI investment story just got a hard sanity check, and the numbers do not add up.
According to research firm eMarketer, OpenAI's advertising business is on pace to miss the company's own five-year revenue forecast by roughly 90%. OpenAI has projected $2.5 billion in OpenAI ad revenue in 2026, growing to $100 billion by 2030. eMarketer's data tells a different story: standalone AI chatbots, including ChatGPT, Microsoft Copilot, Google AI Mode, and Amazon's Alexa for Shopping combined, will generate less than $1 billion in ad revenue this year, and just $5.41 billion across the entire market by 2030.
#forecast #gemini #don 't
9 days ago
Earlier this year, the streaming and entertainment industry witnessed one of its most high-stakes megadeals ever, stunning industry observers. Not only is it historic in its size, but it is also predicted to disrupt Hollywood and the media business as we know it.
After years of Warner Bros. Discovery (WBD) struggling under the weight of billions of dollars in debt, compounded by declining cable viewership and fierce competition from streaming platforms, the company has been considering major strategic changes, including selling its entertainment **** ets to one of its rivals.
Several major players saw the potential in acquiring the media giant, and in December, Netflix announced it would acquire WBD's studios and streaming for $82.7 billion.
But in a surprise eleventh-hour move in late February, the David Ellison-run Paramount became the winner of this bidding war, offering $111 billion to acquire all of WBD's **** ets, including its studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV. Paramount was recently acquired by Ellison with significant support from his father, Larry Ellison — the Oracle chairman, world's sixth-richest person, and major Trump donor.
Paramount's offer was approved by the U.S. Department of Justice (DOJ) in June. However, a federal judge just paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general.
#Streaming
After years of Warner Bros. Discovery (WBD) struggling under the weight of billions of dollars in debt, compounded by declining cable viewership and fierce competition from streaming platforms, the company has been considering major strategic changes, including selling its entertainment **** ets to one of its rivals.
Several major players saw the potential in acquiring the media giant, and in December, Netflix announced it would acquire WBD's studios and streaming for $82.7 billion.
But in a surprise eleventh-hour move in late February, the David Ellison-run Paramount became the winner of this bidding war, offering $111 billion to acquire all of WBD's **** ets, including its studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV. Paramount was recently acquired by Ellison with significant support from his father, Larry Ellison — the Oracle chairman, world's sixth-richest person, and major Trump donor.
Paramount's offer was approved by the U.S. Department of Justice (DOJ) in June. However, a federal judge just paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general.
#Streaming
9 days ago
Oracle's (ORCL) stock price may be catching a bid on Tuesday, but it has been obliterated in recent weeks.
AlphaSpace insight: With the nearly 4% decline in Oracle's stock price on Monday, shares are now down more than 50% since June 2, according to Yahoo Finance AlphaSpace data. This brings the year-to-date slide in Oracle's stock price to 36% versus a 9% gain for the S&P 500 (^GSPC).
AlphaSpace data shows Oracle's stock is trading at its lowest forward price-to-earnings ratio in more than four years at 15.5 times. The current forward P/E ratio for the S&P 500 is about 20 times.
What's behind the move: Investors are questioning whether Oracle's AI-fueled growth expectations have become too aggressive.
#Stock #price #forward #Monday
AlphaSpace insight: With the nearly 4% decline in Oracle's stock price on Monday, shares are now down more than 50% since June 2, according to Yahoo Finance AlphaSpace data. This brings the year-to-date slide in Oracle's stock price to 36% versus a 9% gain for the S&P 500 (^GSPC).
AlphaSpace data shows Oracle's stock is trading at its lowest forward price-to-earnings ratio in more than four years at 15.5 times. The current forward P/E ratio for the S&P 500 is about 20 times.
What's behind the move: Investors are questioning whether Oracle's AI-fueled growth expectations have become too aggressive.
#Stock #price #forward #Monday
10 days ago
Interested in Oracle Corporation? Here are five stocks we like better.
S&P Global Ratings downgraded Oracle's credit rating to BBB-, citing a widening free cash flow deficit and heavy reliance on OpenAI for revenue.
Microsoft, Alphabet, Amazon and Oracle are all borrowing heavily to fund AI spending, but Oracle has the weakest balance sheet and no rating cushion left.
Oracle's negative free cash flow raises the risk of higher interest costs, fewer buybacks, and difficulty covering debt if AI demand slows.
The past few weeks have seen the bond market start asking a question the stock market has mostly been happy to ignore: Who can actually afford the AI buildout?
#oracle #rating #corporation #global
S&P Global Ratings downgraded Oracle's credit rating to BBB-, citing a widening free cash flow deficit and heavy reliance on OpenAI for revenue.
Microsoft, Alphabet, Amazon and Oracle are all borrowing heavily to fund AI spending, but Oracle has the weakest balance sheet and no rating cushion left.
Oracle's negative free cash flow raises the risk of higher interest costs, fewer buybacks, and difficulty covering debt if AI demand slows.
The past few weeks have seen the bond market start asking a question the stock market has mostly been happy to ignore: Who can actually afford the AI buildout?
#oracle #rating #corporation #global
10 days ago
Oracle (NYSE:ORCL) could be required to provide more than $7 billion in financial guarantees for its planned Wisconsin data centre after state regulators declined to ease credit requirements intended to shield electricity customers from higher energy costs.
According to the Financial Times, the Wisconsin Public Service Commission has decided not to revise the conditions imposed on utility provider We Energies. Under the current framework, Oracle may need to secure a letter of guarantee worth approximately $7 billion, a requirement that could cost the company more than $100 million each year.
The planned data centre in Port Washington, Wisconsin, is expected to deliver nearly one gigawatt of computing capacity and forms part of Oracle's $300 billion computing infrastructure agreement with OpenAI.
The potential guarantee requirement adds another financial consideration to Oracle's expanding artificial intelligence strategy, alongside increasing debt levels and significant capital spending ****** ociated with building AI infrastructure.
Under We Energies' tariff for very large electricity users, developers of major data centres with an S&P credit rating below A-minus must provide collateral either in cash or through a letter of credit.
#financial #data #provide #centre
According to the Financial Times, the Wisconsin Public Service Commission has decided not to revise the conditions imposed on utility provider We Energies. Under the current framework, Oracle may need to secure a letter of guarantee worth approximately $7 billion, a requirement that could cost the company more than $100 million each year.
The planned data centre in Port Washington, Wisconsin, is expected to deliver nearly one gigawatt of computing capacity and forms part of Oracle's $300 billion computing infrastructure agreement with OpenAI.
The potential guarantee requirement adds another financial consideration to Oracle's expanding artificial intelligence strategy, alongside increasing debt levels and significant capital spending ****** ociated with building AI infrastructure.
Under We Energies' tariff for very large electricity users, developers of major data centres with an S&P credit rating below A-minus must provide collateral either in cash or through a letter of credit.
#financial #data #provide #centre
10 days ago
The AI boom is forcing some of technology's biggest cash machines to behave more like utilities. On July 22, Reuters reported that Microsoft Corporation (NASDAQ:MSFT), Oracle Corporation (NYSE:ORCL), and three other hyperscalers are expected to spend more on capital expenditures than they generate in combined free cash flow by 2027. From 2025 through 2027, their annual operating cash flow is projected to rise by $340 billion, versus a $534 billion increase in capex. Microsoft and Oracle, however, are not carrying the same risk.
Microsoft showed the squeeze in fiscal Q2. Operating cash flow was $35.8 billion, while capex including finance leases reached $37.5 billion. That does not mean the company burned cash: Microsoft reported $5.9 billion of conventional free cash flow because that measure deducts cash property and equipment purchases, not newly originated finance leases.
Carol Gauthier/Shutterstock.com
Fiscal Q3, however, was stronger. Operating cash flow rose to $46.7 billion and free cash flow reached $15.8 billion, even after $30.9 billion of cash property and equipment spending. Its AI business also passed a $37 billion annual revenue run rate. Microsoft can finance the buildout. The question is whether Azure and Copilot can generate nice returns before expensive GPUs depreciate or become obsolete.
Oracle has a more immediate cash problem. In fiscal 2026, it spent $55.7 billion on capex against $32 billion of operating cash flow, leaving free cash flow at negative $23.7 billion. Demand is real: cloud revenue grew 39% to $34 billion, and remaining performance obligations reached $638 billion. But backlog is not cash. Oracle must construct capacity before much of that revenue arrives, and plans to raise $45 billion to $50 billion through debt and equity.
#operating #free
Microsoft showed the squeeze in fiscal Q2. Operating cash flow was $35.8 billion, while capex including finance leases reached $37.5 billion. That does not mean the company burned cash: Microsoft reported $5.9 billion of conventional free cash flow because that measure deducts cash property and equipment purchases, not newly originated finance leases.
Carol Gauthier/Shutterstock.com
Fiscal Q3, however, was stronger. Operating cash flow rose to $46.7 billion and free cash flow reached $15.8 billion, even after $30.9 billion of cash property and equipment spending. Its AI business also passed a $37 billion annual revenue run rate. Microsoft can finance the buildout. The question is whether Azure and Copilot can generate nice returns before expensive GPUs depreciate or become obsolete.
Oracle has a more immediate cash problem. In fiscal 2026, it spent $55.7 billion on capex against $32 billion of operating cash flow, leaving free cash flow at negative $23.7 billion. Demand is real: cloud revenue grew 39% to $34 billion, and remaining performance obligations reached $638 billion. But backlog is not cash. Oracle must construct capacity before much of that revenue arrives, and plans to raise $45 billion to $50 billion through debt and equity.
#operating #free
14 days ago
This article was originally published on ETFTrends.com.
The crescendo of AI-related spending is affecting all corners of the capital markets. Debt financing has been especially impacted this year given the epic financing needs of the largest hyperscalers. The big four — Meta, Microsoft, Alphabet, and Amazon — are slated to spend at least $700 billion in 2026, roughly 80% higher than 2025's record figure. That amounts to 2.2% of GDP in AI capex from these four names alone, before accounting for the many other companies investing at similar scale.
These capex plans do not come cheap, and the debt markets are bearing much of the load. Investment grade corporate issuance has already cleared $976 billion through May, running well ahead of the record pace set in each of the past five years, including 2025 — itself a record. Hyperscalers are the marginal driver: Alphabet, Amazon, Meta, Microsoft, and Oracle have priced roughly $110 billion of US paper year-to-date, accounting for nearly 16% of IG issuance, versus just 3% a year ago.
Yet spreads have barely flinched as demand is meeting supply. IG spreads sit near 80 basis points, consistent with the tightest levels since the mid-1990s. Yield buyers, such as pensions, insurance companies, and other liability-driven allocators have absorbed the supply, happy to harvest all-in yields that remain above 5% for IG corporates, even as spread compensation shrinks.
Spreads this tight leave little margin for error. A rebound in M&A activity, a stumble in hyperscaler return on AI investment, or a bout of supply indigestion could easily reverse positive sentiment on corporates. Hyperscaler spreads already trade more than 25 bps wider than the broader IG index, a 10-year high, hinting that the market is beginning to differentiate among issuers. Spreads are priced for a perfect AI capex cycle, but the supply imbalance will eventually correct through a buyer's revolt. Whether that comes in three months or three years is uncertain, but the current spread setup leaves little cushion when it does. All-in yields still look attractive; however, with corporate spreads offering little downside protection, we prefer to source yield from sectors with better risk-adjusted compensation.
The crescendo of AI-related spending is affecting all corners of the capital markets. Debt financing has been especially impacted this year given the epic financing needs of the largest hyperscalers. The big four — Meta, Microsoft, Alphabet, and Amazon — are slated to spend at least $700 billion in 2026, roughly 80% higher than 2025's record figure. That amounts to 2.2% of GDP in AI capex from these four names alone, before accounting for the many other companies investing at similar scale.
These capex plans do not come cheap, and the debt markets are bearing much of the load. Investment grade corporate issuance has already cleared $976 billion through May, running well ahead of the record pace set in each of the past five years, including 2025 — itself a record. Hyperscalers are the marginal driver: Alphabet, Amazon, Meta, Microsoft, and Oracle have priced roughly $110 billion of US paper year-to-date, accounting for nearly 16% of IG issuance, versus just 3% a year ago.
Yet spreads have barely flinched as demand is meeting supply. IG spreads sit near 80 basis points, consistent with the tightest levels since the mid-1990s. Yield buyers, such as pensions, insurance companies, and other liability-driven allocators have absorbed the supply, happy to harvest all-in yields that remain above 5% for IG corporates, even as spread compensation shrinks.
Spreads this tight leave little margin for error. A rebound in M&A activity, a stumble in hyperscaler return on AI investment, or a bout of supply indigestion could easily reverse positive sentiment on corporates. Hyperscaler spreads already trade more than 25 bps wider than the broader IG index, a 10-year high, hinting that the market is beginning to differentiate among issuers. Spreads are priced for a perfect AI capex cycle, but the supply imbalance will eventually correct through a buyer's revolt. Whether that comes in three months or three years is uncertain, but the current spread setup leaves little cushion when it does. All-in yields still look attractive; however, with corporate spreads offering little downside protection, we prefer to source yield from sectors with better risk-adjusted compensation.
15 days ago
Prominent neocloud company Nebius (NBIS) has inked a billion-dollar agreement with Reflection AI to provide AI compute through 2029. Under the terms of the deal, Reflection AI will gain access to Nebius's capacity of Nvidia's (NVDA) GB300 chips. Although not the latest generation of Nvidia chips (that distinction belongs to the Rubin GPU), the GB300 is a high-performance system built on Blackwell Ultra GPU technology.
The deal would represent annual revenues of about $290 million throughout its tenure if spread evenly. Notably, this would be close to 55% of the company's total revenues in 2025.
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The deal would represent annual revenues of about $290 million throughout its tenure if spread evenly. Notably, this would be close to 55% of the company's total revenues in 2025.
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15 days ago
Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) is a semiconductor company that offers artificial intelligence accelerators, microprocessors, graphics processing units (GPUs), chipsets, and data center and professional GPUs, and more. Valued at a market capitalization of $893.8 billion, the company operates through Data Center, Client and Gaming, and Embedded segments.
AMD is expected to release its Q2 2026 earnings on Tuesday, Aug. 4, after the market closes. Ahead of the event, ******* ysts expect the company's EPS to be $1.34 on a diluted basis, up 396.3% from $0.27 in the year-ago quarter. The company has met or exceeded Wall Street's EPS estimates in three of its last four quarters, while missing on one occasion.
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AMD is expected to release its Q2 2026 earnings on Tuesday, Aug. 4, after the market closes. Ahead of the event, ******* ysts expect the company's EPS to be $1.34 on a diluted basis, up 396.3% from $0.27 in the year-ago quarter. The company has met or exceeded Wall Street's EPS estimates in three of its last four quarters, while missing on one occasion.
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Short Seller Hunterbrook Attacked Bloom Energy's Supply-Chain Claims. BE Stock Is Bruised, But Not Broken.
15 days ago
The S&P 500 Index ($SPX) (SPY) today is up +0.15%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.64%. September E-mini S&P futures (ESU26) are up +0.16%, and September E-mini Nasdaq futures (NQU26) are down -0.60%.
Stock indexes are mixed today, with the S&P 500 posting a 1-month high. The broader market garnered support from today's US economic news, which showed that June producer prices rose less than expected and the July Empire manufacturing survey rose more than expected.
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Short Seller Hunterbrook Attacked Bloom Energy's Supply-Chain Claims. BE Stock Is Bruised, But Not Broken.
Stock indexes are mixed today, with the S&P 500 posting a 1-month high. The broader market garnered support from today's US economic news, which showed that June producer prices rose less than expected and the July Empire manufacturing survey rose more than expected.
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Short Seller Hunterbrook Attacked Bloom Energy's Supply-Chain Claims. BE Stock Is Bruised, But Not Broken.
