Oracle Corporation has unveiled plans for a massive $45 billion to $50 billion capital raise to fund its aggressive expansion of AI data centers, according to a Bernstein analysis. The software giant aims to secure roughly half of the funding through equity-linked instruments, including mandatory convertible preferred securities and a new at-the-market equity program of up to $20 billion, with the remainder coming from senior unsecured bonds.

Bernstein's updated financial modeling suggests the capital raise should cover Oracle's needs through fiscal 2028, potentially easing investor concerns about funding the ambitious infrastructure build-out. The firm projects interest expenses will rise from about $1 billion per quarter in Q2 fiscal 2026 to approximately $1.6 billion starting in Q4, with a partial increase in Q3. Oracle has already completed a $25 billion debt raise as part of this broader financing strategy.

Despite lowering its price target to $313 from previous levels, Bernstein maintains an Outperform rating on Oracle stock. The brokerage views the current valuation as an attractive entry point, citing expectations that cloud and AI demand will drive faster revenue and earnings growth over time. As Oracle scales its cloud infrastructure, questions around profitability and customer concentration risk are expected to become clearer in the coming year.