NVIDIA (NVDA) can be the beautiful of the AI ball, but Oracle (Orthat Cl) makes a strong case that belongs to the same dance floor.
“It is tempting to change this story,” said the chief strategist of the interactive brokers, Steve Sosnick, on the opening of Yahoo Finance. “But I’m always going to stick to the one who brought me to dance, and it’s Nvidia.”
“In the end, they are those who still pump the chips that everyone needs and that everyone wants,” he said, adding that some of Nvidia’s “greatest clients are always the biggest pilots”. These include Amazon (AMZN), Microsoft (MSFT), Google (Googl) and Meta (Meta).
However, was the street speech: does Oracle emerge as a competitor of serious AI?
The company posted serious movements. Its stock jumped 36% on Wednesday after reporting a number of cloud demand figures.
The shares were dropped slightly down on Thursday, but the year to date, the action has increased by 91%.
For its last quarter, Oracle reported $ 332 billion in reservations, the largest number of Morgan Stanley’s team said it has ever seen. Analyst Keith Weiss described it as “tectonic change in the business model to the data center operator”.
However, Oracle’s quarterly performance lacked up and down. The company brought in $ 14.93 billion in the first quarter, which lacked estimates of $ 15.04 billion, according to Bloomberg Data. The profit per share was $ 1.47, just below the $ 1.48 estimate.
“Although the measures reported in the district itself were not impressive … None of this imports,” wrote Weiss, adding that Oracle takes “a dominant advance on this market with these contract additions”.
The CEO of Oracle, Safra Catz, said in a statement that the company had signed “four contracts of several billion dollars with three different customers”, which led to $ 455 billion in remaining performance bonds, up 359% from one year to the other. CATZ added that the company plans to sign additional agreements of several billion dollars with other customers.
Management is now expecting Oracle Cloud infrastructure income from $ 18 billion in exercise 26 to 114 billion dollars in fiscal year.
Brad Syls by Bank of America, who improved Oracle to buy and increased his price target to $ 368, underlined these figures as proof that Oracle becomes a “key ia calculation platform”.
“Oracle clearly draws a number of advantages in its Cloud software / hardware / hardware companies to attract the largest of IA companies, including Openai, Xai, Meta, Nvidia and AMD,” noted Syls.
