Oracle's Expectations Of Persistent 'Hypergrowth' In AI And Nvidia Deal Tease Has This Analyst Excited About AI Revolution
Portfolio Pulse from Rounak Jain
Oracle Corp. (NYSE:ORCL) reported a 29% year-on-year increase in its revenue performance obligation (RPO) to $80 billion, attributed to 'hypergrowth' in AI. CEO Safra Catz teased a forthcoming announcement with Nvidia Corp. (NASDAQ:NVDA), highlighting the AI revolution's momentum. Analyst Dan Ives of Wedbush is optimistic about the AI sector, noting Oracle's performance and the potential ripple effect of Nvidia's GPUs on tech spending. Oracle's stock surged 12.15% following the earnings call.
March 12, 2024 | 2:04 pm
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POSITIVE IMPACT
Nvidia Corp. is teased to have an upcoming announcement with Oracle, highlighting its central role in the AI revolution and potential for increased tech ecosystem spending.
The teased partnership with Oracle and the potential for Nvidia's GPUs to drive additional tech spending position Nvidia positively in the AI revolution, likely benefiting its stock in the short term.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
Oracle's fiscal third-quarter earnings highlighted a significant 29% increase in RPO due to AI 'hypergrowth', with a teased partnership with Nvidia indicating strong future prospects in AI.
Oracle's strong earnings and the teased partnership with Nvidia suggest a bullish outlook for Oracle, particularly in the AI sector, which is likely to positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100