Oracle’s (ORCL) quarterly results are set to reveal the hidden power of their artificial intelligence capabilities. The company is expected to report earnings of $1.15 per share and revenue of $12.47 billion for its fiscal 2024 first quarter. This represents a growth of 11.65% in EPS and about 9% in total revenue. With shares near an all-time high and a 50% increase in 2023, Oracle is becoming the star of the show.
One key factor driving Oracle’s success in the AI race is its close partnership with Nvidia (NVDA), the dominant AI chipmaker. This partnership has helped Oracle Cloud Infrastructure (OCI) become a top choice for companies using AI technology. In the past three months alone, OCI’s revenue has jumped 76% to $1.4 billion, accounting for 10% of Oracle’s total revenue.
Despite being smaller than competitors like Amazon Web Services (AWS) and Microsoft’s Azure, OCI’s growth potential is attracting attention. Analysts at Barclays and UBS have upgraded Oracle’s stock, citing its multiyear growth story rooted in OCI and other key cloud businesses. Barclays even increased its price target to $150 per share from $126.
Oracle’s access to Nvidia’s GPUs and OCI’s efficient architecture have helped attract new customers and drive usage. While analysts remain less bullish on Oracle compared to other AI leaders like Nvidia and Microsoft, the company’s AI opportunity is still in the early stages. With a reasonable valuation and the potential for incremental buyers, Oracle’s AI execution and cloud growth are likely to attract new investors and convince more analysts of its potential.
In conclusion, Oracle’s upcoming earnings report and its strong performance in the AI race could be a turning point for the company. As believers in the story, we expect that Oracle’s AI capabilities and growing cloud share will attract new investors and gain more recognition from analysts. Stay tuned for the exciting results and let us know your thoughts on Oracle’s AI potential. Comment below and join the discussion!
[Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author and any connected parties have positions in the mentioned stocks. Please do your own research before making any investment decisions.]
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