Oracle shares surge nearly 11% as investor day guidance eases AI spending concerns, with a flurry of AI partnerships announced recently.

BlockBeats news, October 29 — According to data from the BIT stock platform, Oracle (ORCL) shares closed up approximately 11% at around $144, adding more than $40 billion in market capitalization in a single day, marking the largest one-day gain since May, with intraday gains once exceeding 13%.

The direct catalyst driving this surge was the financial guidance Oracle provided at its investor day event that day. The company offered a clearer cash flow path, effectively alleviating the market's core concerns about "continuous cash burn from AI buildout and high debt levels." The company expects free cash flow to turn positive in the second half of the next fiscal year (FY2028) and reach approximately $30 billion in FY2029; capital expenditures are expected to peak in FY2027 to 2028 and then begin to decline.

Additionally, from now through fiscal year 2030, the company's additional financing (equity plus debt) has been capped at $20 billion. Oracle also reiterated its long-term financial targets: fiscal year 2030 revenue of at least $225 billion, adjusted operating margin of no less than 40%, and adjusted EPS of no less than $21, while reaffirming its FY2027 expectations of at least $90 billion in revenue and adjusted EPS of $8.10. These specific figures directly addressed investors' most pressing question — namely, whether large-scale data center buildout can achieve "self-sustaining cash generation" as soon as possible. Shares rallied rapidly after the guidance was released.

Beyond the financial guidance, Oracle also announced multiple partnerships during this week's Oracle AI World conference, further reinforcing its cloud infrastructure (OCI) positioning as a multi-chip, multi-ecosystem AI platform. These include expanding its partnership with OpenAI to connect Oracle enterprise applications and data to ChatGPT and launch several new products based on OpenAI models; expanding its partnership with Nvidia to equip OCI Superclusters with the latest Vera Rubin systems at "multi-gigawatt scale"; and partnering with Google, under which OCI will become the first hyperscaler other than Google to offer Google TPUs (starting in 2027).

In addition, Oracle expanded partnerships with Intel, Cerebras, and Snowflake. These initiatives not only enrich OCI's hardware options and reduce dependence on a single supplier, but also more tightly integrate enterprise applications, data, and AI, helping to attract more AI training and inference workloads.

Overall, Oracle's investor day provided a clearer picture of its medium- to long-term cash flow and financing path, which, combined with the recent wave of AI partnerships, jointly drove this significant rebound. The market will continue to watch its capex pace, order conversion progress, and whether cash flow turns positive as planned.