CLSA Downgrades Oracle to Hold, Citing $500B AI Infrastructure Financing Need by 2030

According to CLSA analyst Babtosh Bazpai, on July 20, the firm downgraded Oracle to Hold, citing the cloud and infrastructure provider's need for $500 billion in AI infrastructure funding by 2030. Bazpai noted that Oracle will depend heavily on additional debt to realize its AI infrastructure ambitions, as only a portion can be financed internally.

Oracle currently carries $167.4 billion in total debt. Bazpai set a price target of $145, based on approximately 18 times the firm's projected 2028 fiscal year earnings, citing Oracle's increased sensitivity to changes in funding costs, execution, and AI cloud service demand due to its leverage levels.