Oracle Declines 4% as $10 Billion Bond Sale Revives AI Debt Worries; CoreWeave Advances 2%, Microsoft Holds Steady

Oracle plans to raise $10B through a stock offering and $10B via senior notes, with proceeds for general corporate purposes. Microsoft raised $25B in notes, also for general corporate uses. Both offerings are linked to AI infrastructure demand. Goldman Sachs and Wells Fargo are involved as managers. Additionally, Goldman advises Marvell on its $115B acquisition of Lumentum, expected to close by H1 2028.

Oracle co-founder Larry Ellison's net worth dropped $11 billion to $160 billion as Oracle shares fell 8.5% to a four-month low. The company plans to sell $20 billion in debt and equity for general purposes, including AI investments. Oracle's stock has declined 37% year-to-date, despite strong cloud infrastructure revenue growth.

Applied Digital (APLD) fell 8% after CEO Wes Cummins said the company needs to finance 800 MW of data center capacity. The stock is down 51% over the past year. Cummins highlighted $20B in contracted revenue and growth plans for 3.5-4 GW capacity by 2030, but rising interest expenses and reliance on CoreWeave (CRWV) are concerns. Nebius (NBIS) and CoreWeave also fell 6%.

Oracle faces a proposed bondholder class action over disclosures in its September 2025 debt offering, alleging inadequate disclosure of AI-related financing needs. The company's shares have declined amid concerns over AI spending, borrowing, and data-center commitments. Oracle reported $125 billion in borrowings and $288 billion in data-center lease commitments as of August 31, 2026.

Stephens upgraded Oracle to Overweight, setting a $213 price target, a 63% increase from Friday's close. The firm expects positive free cash flow by fiscal 2028 and capped new fundraising at $20 billion through fiscal 2030. Oracle's stock closed at $130.68 on Friday, down 50% from its year-ago high. Analysts expect earnings to jump in fiscal 2028, but OpenAI's share of Oracle's backlog remains a risk.

Oracle (ORCL) raised $20 billion in debt and equity, despite earlier pledges to limit fundraising. Its stock fell 6.5% on the news, erasing gains from last week's investor day. The company has lost over half its value in the past year. Oracle's debt levels and borrowing costs are higher than peers like Microsoft (MSFT) and Apple (AAPL).