$ORCL is quietly becoming a major beneficiary in the next phase of artificial intelligence.
Latest data shows strong performance:
RPO: $553 billion, up 325% year-over-year
OCI revenue: up 84% year-over-year
Cloud revenue: up 44% year-over-year
FY2027 revenue forecast raised to $90 billion
The key shift is that the cost of AI models is decreasing, and high-quality data is becoming a scarce resource.
ORCL has decades of accumulated enterprise data, databases, ERP systems, medical records, government workloads, and critical business infrastructure.
In the age of AI, companies with the best data pipelines may be more valuable than those with the flashiest models.
AI demands computational power.
Businesses need secure data.
Governments require trustworthy cloud services.
Oracle is perfectly positioned at the intersection of these three.
Of course, risks still exist. Capital expenditures are massive, debt issues cannot be ignored, and the backlog of AI orders still needs time to convert into profitable revenue.
But objectively speaking, Oracle currently has one of the clearest growth prospects in the large AI infrastructure space.
If AI progresses from the demo phase to real enterprise deployment, Oracle will be in a key position.
Given that the stock has undergone a significant drop previously, its valuation is not as daunting anymore, so the most cost-effective trade in the AI space might not be the extremely overvalued model companies, but rather those with reasonable valuations that possess the data required for the models.
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