Oracle to invest $3 billion in AI, cloud expansion in Germany, Netherlands
The Austin, Texas-based company joins a growing list of technology firms that have pledged tens of billions of dollars to meet robust cloud computing demand as businesses increasingly deploy AI workloads.
Last year, Amazon said it would invest 10 billion euros in Germany, bringing its total planned investments in the European country to 17.8 billion euros.
Together, big tech companies are expected to spend $320 billion on AI this year. On Monday, Meta CEO Mark Zuckerberg said the social media giant would spend hundreds of billions of dollars to build several massive AI data centers.
Demand has been growing for the cloud and AI services offered by firms including Oracle, Amazon.com, Microsoft and Google because they can replace or outperform software created by traditional IT firms, some analysts say.
Oracle would spend $2 billion in Germany and $1 billion in the Netherlands, the company said in separate statements.
Its shares rose 2% in trading before the bell. They have risen nearly 38% so far this year.
The company expects its capital spending to surpass $25 billion in fiscal 2026, with the bulk of the expenditure committed to data-center infrastructure, including for AI.
"As we bring more capacity online, our revenue and profit growth will further accelerate," Oracle CEO Safra Catz said in June.
Oracle has secured a deal with an undisclosed client that is expected to generate over $30 billion in annual revenue for the company starting in fiscal year 2028, according to a regulatory filing last month.
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- Yahoo
Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?
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My prior price target was $178 per share using an estimated 55% forward free cash flow (FCF) margin (i.e., FCF/sales), as well as a 2.85% FCF yield valuation metric (i.e., 35x FCF multiple). Last quarter, Nvidia made a 59% FCF margin. So, if this continues over the coming year, NVDA stock could have further to go. Moreover, analysts have lifted their price targets. Let's look at this. In Q1 ending April 27, Nvidia generated $26.1 billion in FCF on $44.06 billion in sales. That represents a 59.2% FCF margin. Over the trailing months, according to Stock Analysis, it's generated $72.06 billion FCF on $148.5 billion in sales, or a 48.5% FCF margin. So, it seems reasonable to assume Nvidia could make at least a 57% FCF margin going forward. Here's how that would work out. Analysts expect sales to rise to a range between $199.89 billion this year ending Jan. 2026 and $251.2 billion next year. That puts it on a next 12 months (NTM) run rate of $225.5 billion. 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29 minutes ago
- Yahoo
What Are the 3 Best Bargain Artificial Intelligence (AI) Stocks to Buy Right Now?
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