Oracle's stock price soared, as the company's long-term free cash flow outlook previously exceeded analysts' expectations, alleviating investors' concerns regarding the potential returns on its investments in artificial intelligence ( AI ).

Chief Financial Officer Hilary Maxson stated at the company's annual meeting held in Las Vegas on Wednesday that for the fiscal year ending May 2029, free cash flow is expected to reach $30 billion. Data compiled by Bloomberg shows that investors previously anticipated that free cash flow for that fiscal year would still be negative.

Oracle, long known for its database software, is making efforts to transform into a AI computing power provider, vigorously building data centers to serve customers such as OpenAI. Wall Street is closely monitoring the scale of funding required for these ambitious projects and how fast Oracle can complete the construction.

Boosted by the company's long-term outlook, Oracle's stock price rose by 11% to $144.34, marking the largest one-day increase since May 29. As of the close on Tuesday, the stock has fallen by 33% this year.

In addition, Oracle stated that the additional financing requirements up to May 2030 will be limited to $20 billion and will be raised through a combination of equity and debt.