Oracle Corp.'s (NYSE:ORCL) stock slid over 8% in premarket trading Thursday as investors panicked over a plan to raise $40 billion to fund AI infrastructure, but CNBC's Jim Cramer is defending the software giant, arguing the financing isn't "outrageous" given the company's $638 billion backlog.
Backlog Vs.
Funding Fears The sharp selloff—following a 10% tumble in after-hours trading—highlights a growing rift on Wall Street regarding the massive cash burn required to scale artificial intelligence clusters.
While the tech giant reported a blockbuster remaining performance obligation (RPO) of $638 billion, a figure highlighted by Futurum Equities' Shay Boloor as "absolutely wild," the simultaneous $40 billion debt and equity financing announcement spooked the market.
Cramer pushed back against the bearish sentiment on social media, emphasizing that high-performance AI data centers are incredibly capital-intensive by nature.
