** Oracle ORCL.N on Wednesday forecast capital spending plans for fiscal 2027 above Wall Street estimates, as the cloud-computing company said it will also raise more debt in 2027, reflecting the staggering scale of cash burn needed to build out its AI infrastructure

** Shares of Oracle down nearly 8% at $185.58 premarket

GO BIG OR GO HOME ON AI

** J.P. Morgan ("Overweight," PT: $210) stays constructive on Oracle's backlog and drivers of ongoing growth acceleration, while acknowledging material capex outlays, and ultimately sees a positively biased risk-reward dynamic

** Morgan Stanley ("Equal weight," PT: $207) says despite continued acceleration in cloud infrastructure, a largely unchanged fiscal outlook limits upside to estimates as investors seek stronger conviction in Oracle's Graphics Processing Unit as a Service (GPUaaS) pivot, its model of offering GPU power via the cloud

** Morningstar (Fair Value: $207) says strong market demand and solid data center ramp-up are exactly what Oracle needs to reach its long-term revenue goals

** Jefferies ("Buy," PT: $320) says concerns on remaining performance obligations (RPO) conversion and slower cloud apps persist, but the company's AI infrastructure story and growth indicators remain strong, with capex funding better than feared