Oracle shares advanced 1.92% on Tuesday, lifted by a new healthcare-focused artificial intelligence collaboration with AstraZeneca, analyst commentary about potential financing backing from Nvidia, and survey data pointing to firmer demand for the company's software products.
The AstraZeneca partnership will examine how technology can help clinicians match patients to clinical trials, refine treatment pathways, and bridge the gap between medical research and everyday care. The effort extends Oracle's AI ambitions beyond cloud infrastructure into applied healthcare use cases.
Even so, Oracle continues to draw scrutiny over the expense of its data-centre buildout and the financing needed to deliver capacity it has already contracted to customers.
Nvidia may be providing financing support
TD Cowen analyst Michael Elias wrote in a research note that the firm's latest checks suggested Nvidia could be extending credit support to Oracle as the cloud provider widens its data-centre footprint. The support could take the form of financial backstops or of Nvidia leasing computing capacity directly and then subleasing it to Oracle.
According to TD Cowen, that arrangement may help explain Oracle's recent data-centre leasing activity in Southeast Asia tied to its reported agreement with Tencent. The analyst added that Oracle is in active talks about vendor financing as it works to deliver capacity already under contract.
TD Cowen views Oracle's return to leasing as a possible signal of future growth in remaining performance obligations, a metric that tracks contracted revenue not yet recognised. The read comes as investors weigh the financial risks of rapid AI infrastructure expansion and the debt required to fund it.
Software survey points to improving demand
A separate BNP Paribas survey found that demand for Oracle's software improved in October after softening in July. Analyst Stefan Slowinski described the company's trailing spending score, which covers the prior three months, as surprisingly strong, with Europe standing out as a bright spot.
Generative AI held the top spot in the survey's spending rankings, displacing cybersecurity. Human capital management and procurement posted the weakest demand. Slowinski said the results may indicate that generative AI is maturing to the point where businesses are devoting more budget to it.
Oracle's database services delivered through Amazon Web Services and Microsoft Azure climbed into the survey's three most in-demand products. Oracle Cloud Infrastructure and Fusion applications also improved.
The survey showed positive readings for Amazon Web Services, Google Cloud and Microsoft, while IBM, Zoom and Adobe scored weaker. Snowflake also outperformed rival Databricks, helped by demand for its Data Science and Snowpark offerings.
Market backdrop
The broader market reversed earlier losses on Tuesday after oil prices declined. The Dow Jones was up 1.06% at the time of writing, the S&P 500 added 0.46%, and the Nasdaq Composite rose 0.2%.
This article is for informational purposes only and does not constitute financial advice.
