Oracle reports its quarterly earnings on June 10.
BNP Paribas predicts the company will increase its capital expenditure forecast to between $80 billion and $100 billion. This spending target applies to fiscal year 2027.
The investment will fund the development of Stargate data center campuses. Oracle also intends to purchase more Nvidia GPUs to strengthen its AI and cloud infrastructure.
The aggressive spending aims to maintain competitiveness in the global AI arms race. Investors are awaiting updates on recent layoffs and the timing of a $20 billion at-the-market equity issuance.
Despite recent significant gains, Oracle shares declined on Friday as the higher spending outlook fueled market caution.