For the six-month period ending Nov. 30, Oracle generated $10.2 billion in operating cash flow and used $20.5 billion for capital expenditures. That works out to a negative free cash flow of $10.3 billion. Capital spending more than tripled year-over-year during the period as Oracle plowed ahead with its capital-intensive AI strategy.
Oracle has spent years piling up debt to fund share buybacks, which raises the risk level of adding even more debt to the balance sheet. Thanks to heavy spending on AI infrastructure, Oracle ended the second quarter with about $108 billion in debt. That’s up from $92.6 billion in May. The company completed an $18 billion bond sale in September.
Oracle stock was tumbling on Thursday following the release of its second-quarter report. If the company can successfully convert its AI infrastructure backlog into revenue over the next few years, its revenue growth is expected to accelerate dramatically. However, the upfront cost is enormous. Additionally, there’s a risk related to OpenAI, which reportedly has a $300 billion AI infrastructure contract with Oracle. If OpenAI struggles to raise sufficient funding or generate enough revenue as competition intensifies, Oracle could be left holding the bag.
https://www.fool.com/investing/2025/12/11/oracles-debt-balloons-to-108-billion-as-ai-spendin/
$NVDA and $ORCL share a high correlation, and that relationship matters here. If Oracle continues to trend lower, any near-term gains in NVDA may struggle to sustain. Until Oracle stabilizes, upside in NVDA is likely to remain fragile. pic.twitter.com/Fl0YIz2hmB
— optionGeek (@StockShark16) December 15, 2025