Latest news with #SafraCatz
Yahoo
30-05-2025
- Business
- Yahoo
Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June
Oracle stock has been recovering nicely in recent weeks from its 2025 slump, and it could receive another shot in the arm from the release of its quarterly results in mid-June. The tech giant's growth is on track to accelerate in the current and upcoming fiscal years. Oracle's growth potential and valuation indicate that it could make investors richer over the next couple of years. 10 stocks we like better than Oracle › Following a difficult start to the year, Oracle (NYSE: ORCL) stock has been resurgent in recent weeks, rising nearly 35% since April 21 amid the broader recovery in technology stocks. Over the same period, the Nasdaq Composite index recorded an 22% gain. The database and cloud infrastructure provider is expected to table its fiscal 2025 fourth-quarter results in mid-June. That report could give its recent rally a nice boost. Oracle stock took a hit earlier this year after its fiscal Q3 results and fiscal Q4 guidance missed analysts' expectations. The company is expecting its top line to increase by 9% in fiscal Q4. Its overall revenue for fiscal 2025 is expected to grow by 8% to just over $57 billion. However, investors can expect a significant acceleration in Oracle's growth beginning in fiscal 2026 thanks to the terrific demand for the company's cloud infrastructure, which is being used by customers for both artificial intelligence (AI) training and inference. Oracle claims that its cloud infrastructure is faster and cheaper than rivals, and the high-speed networking capability of that infrastructure makes the company's platform ideal for tackling AI workloads. This explains why the demand for Oracle Cloud Infrastructure (OCI) is "dramatically" exceeding supply, according to CEO Safra Catz. Although the company has just a 3% market share in the global cloud market, the company is touting its 51% growth in OCI revenue in fiscal Q3, which Catz points out was "a much higher growth rate than any of our hyperscaler competitors." As a result, the company has been investing aggressively to boost its cloud infrastructure capacity so that it can meet the increasing demand for AI workloads from existing customers, while also catering to the new customers that are migrating to its platform in hopes of increasing its market share. In March, management said it expected Oracle's capital expenditures for fiscal 2025 would be about $16 billion, more than double its capex in fiscal 2024. That massive increase is justified by the rate at which Oracle is signing new cloud contracts. The company's remaining performance obligation -- the total value of contracts it has signed, but has yet to fulfill -- increased an impressive 63% year over year to $130 billion at the end of Q3. What's worth noting is that Oracle's remaining performance obligation increased by 53% and 50%, respectively, in the first two quarters of the fiscal year. So, the adoption of its cloud platform increased at a solid pace, and its massive revenue pipeline justifies the aggressive capacity investments it's making. The good part is that Oracle's remaining performance obligation doesn't yet include any contracts from the Stargate project, the $500 billion AI infrastructure venture led by OpenAI and SoftBank. In March, Oracle Chairman Larry Ellison said that spending on the Stargate project would boost the company's remaining performance obligation even higher in the next few quarters. There is a good chance that the contracts Ellison was predicting could start materializing when the company releases its next set of results next month. The company reportedly placed orders for $40 billion worth of Nvidia's AI graphics cards for a Stargate data center in Texas. Additionally, Oracle is set to develop an AI data center in the United Arab Emirates as part of the Stargate project. Given that OpenAI is considering the deployment of AI data centers in 16 U.S. states under Stargate, and that Oracle is a "key initial technology partner" in the project, it won't be surprising to see Oracle's revenue pipeline improving further. All of this helps explain why Oracle has forecast that its revenue will increase by 15% in the new fiscal year, followed by an increase of 20% in the 2027 fiscal year. Moreover, the company believes that the component delays slowing down its cloud capacity expansion will ease in the current quarter, which could allow it to deliver better-than-expected guidance and send the stock even higher. Though Oracle stock rallied in recent weeks, it is still trading at an attractive 23 times forward earnings. That's lower than the tech-heavy Nasdaq-100 index's forward earnings multiple of 27.5. We have already seen that Oracle is expecting much stronger top-line growth over the next couple of fiscal years. That's expected to translate into stronger earnings growth as well compared to the 8% projected increase in its bottom line in fiscal 2025 to $6 per share. If Oracle's annual earnings do reach $8.18 per share after a couple of years and it trades in line with the Nasdaq-100 index's current forward earnings multiple at that time, its stock price could hit $225. That would be a 39% jump from today's levels. However, this AI stock could end up delivering much stronger gains since it has the potential for even stronger earnings growth, which could lead the market to reward it with a richer valuation. That's why it may be a good idea to invest in Oracle stock now, while it's still trading at attractive levels. Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Oracle. The Motley Fool has a disclosure policy. Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June was originally published by The Motley Fool
Yahoo
30-05-2025
- Business
- Yahoo
Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June
Oracle stock has been recovering nicely in recent weeks from its 2025 slump, and it could receive another shot in the arm from the release of its quarterly results in mid-June. The tech giant's growth is on track to accelerate in the current and upcoming fiscal years. Oracle's growth potential and valuation indicate that it could make investors richer over the next couple of years. 10 stocks we like better than Oracle › Following a difficult start to the year, Oracle (NYSE: ORCL) stock has been resurgent in recent weeks, rising nearly 35% since April 21 amid the broader recovery in technology stocks. Over the same period, the Nasdaq Composite index recorded an 22% gain. The database and cloud infrastructure provider is expected to table its fiscal 2025 fourth-quarter results in mid-June. That report could give its recent rally a nice boost. Oracle stock took a hit earlier this year after its fiscal Q3 results and fiscal Q4 guidance missed analysts' expectations. The company is expecting its top line to increase by 9% in fiscal Q4. Its overall revenue for fiscal 2025 is expected to grow by 8% to just over $57 billion. However, investors can expect a significant acceleration in Oracle's growth beginning in fiscal 2026 thanks to the terrific demand for the company's cloud infrastructure, which is being used by customers for both artificial intelligence (AI) training and inference. Oracle claims that its cloud infrastructure is faster and cheaper than rivals, and the high-speed networking capability of that infrastructure makes the company's platform ideal for tackling AI workloads. This explains why the demand for Oracle Cloud Infrastructure (OCI) is "dramatically" exceeding supply, according to CEO Safra Catz. Although the company has just a 3% market share in the global cloud market, the company is touting its 51% growth in OCI revenue in fiscal Q3, which Catz points out was "a much higher growth rate than any of our hyperscaler competitors." As a result, the company has been investing aggressively to boost its cloud infrastructure capacity so that it can meet the increasing demand for AI workloads from existing customers, while also catering to the new customers that are migrating to its platform in hopes of increasing its market share. In March, management said it expected Oracle's capital expenditures for fiscal 2025 would be about $16 billion, more than double its capex in fiscal 2024. That massive increase is justified by the rate at which Oracle is signing new cloud contracts. The company's remaining performance obligation -- the total value of contracts it has signed, but has yet to fulfill -- increased an impressive 63% year over year to $130 billion at the end of Q3. What's worth noting is that Oracle's remaining performance obligation increased by 53% and 50%, respectively, in the first two quarters of the fiscal year. So, the adoption of its cloud platform increased at a solid pace, and its massive revenue pipeline justifies the aggressive capacity investments it's making. The good part is that Oracle's remaining performance obligation doesn't yet include any contracts from the Stargate project, the $500 billion AI infrastructure venture led by OpenAI and SoftBank. In March, Oracle Chairman Larry Ellison said that spending on the Stargate project would boost the company's remaining performance obligation even higher in the next few quarters. There is a good chance that the contracts Ellison was predicting could start materializing when the company releases its next set of results next month. The company reportedly placed orders for $40 billion worth of Nvidia's AI graphics cards for a Stargate data center in Texas. Additionally, Oracle is set to develop an AI data center in the United Arab Emirates as part of the Stargate project. Given that OpenAI is considering the deployment of AI data centers in 16 U.S. states under Stargate, and that Oracle is a "key initial technology partner" in the project, it won't be surprising to see Oracle's revenue pipeline improving further. All of this helps explain why Oracle has forecast that its revenue will increase by 15% in the new fiscal year, followed by an increase of 20% in the 2027 fiscal year. Moreover, the company believes that the component delays slowing down its cloud capacity expansion will ease in the current quarter, which could allow it to deliver better-than-expected guidance and send the stock even higher. Though Oracle stock rallied in recent weeks, it is still trading at an attractive 23 times forward earnings. That's lower than the tech-heavy Nasdaq-100 index's forward earnings multiple of 27.5. We have already seen that Oracle is expecting much stronger top-line growth over the next couple of fiscal years. That's expected to translate into stronger earnings growth as well compared to the 8% projected increase in its bottom line in fiscal 2025 to $6 per share. If Oracle's annual earnings do reach $8.18 per share after a couple of years and it trades in line with the Nasdaq-100 index's current forward earnings multiple at that time, its stock price could hit $225. That would be a 39% jump from today's levels. However, this AI stock could end up delivering much stronger gains since it has the potential for even stronger earnings growth, which could lead the market to reward it with a richer valuation. That's why it may be a good idea to invest in Oracle stock now, while it's still trading at attractive levels. Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Oracle. The Motley Fool has a disclosure policy. Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June was originally published by The Motley Fool
TECHx
14-05-2025
- Business
- TECHx
Oracle Announces $14 Billion Saudi Arabia Investment Plan
Home » Top stories » Oracle Announces $14 Billion Saudi Arabia Investment Plan Oracle has announced a $14 billion investment in the Kingdom of Saudi Arabia over the next ten years. The company stated that this move supports Saudi Arabia's Vision 2030 and will accelerate access to advanced cloud and AI technologies across the Kingdom. Oracle reported that the expanded investment is aimed at empowering digital innovation, enhancing healthcare services, and contributing to economic development in the region. The company emphasized that its technology will help strengthen national security and reinforce Saudi sovereignty. The announcement comes as Saudi Arabia intensifies efforts to become a global digital leader. Oracle confirmed that this partnership aligns with the Kingdom's strategic goals and reflects strong collaboration between Saudi Arabia and the United States. Safra Catz, CEO of Oracle, said the investment was made possible due to the leadership and policy direction of President Trump and his administration. She noted that Oracle's technologies would bring measurable benefits to the Saudi people and help build stronger diplomatic and economic ties with the U.S. 'Thanks to the decisive actions and strong leadership of President Trump and his administration, Oracle is providing the world's most advanced cloud and AI technology to Saudi Arabia,' Catz said. She added that the partnership would create new opportunities across key sectors while supporting broader goals of peace and prosperity throughout the Middle East. Key points of Oracle's commitment include: $14 billion investment over 10 years in Saudi Arabia Focus on cloud and AI infrastructure to drive innovation Support for healthcare, economic growth, and national security Oracle reiterated that this move will contribute to Vision 2030 by enabling sustainable digital transformation and advancing bilateral cooperation.
Gulf Business
13-05-2025
- Business
- Gulf Business
Trump's Saudi visit: Oracle pledges $14bn investment in Saudi Arabia
Image: Getty Images US tech giant Oracle said on Tuesday it will invest $14bn in Saudi Arabia over the next decade, reaffirming its support for the kingdom's Vision 2030 economic diversification plan. The investment aims to bring Oracle's latest cloud computing and artificial intelligence technologies to the Gulf nation, with the company saying the move will support innovation, economic growth, and improved public services in Saudi Arabia. 'Thanks to the decisive actions and strong leadership of President Trump and his administration, Oracle is providing the world's most advanced cloud and AI technology to Saudi Arabia,' said Safra Catz, CEO of Oracle. Oracle committed to supporting US-Saudi ties The announcement comes as Saudi Arabia pushes forward with its ambitious Vision 2030 strategy, a multi-sector reform plan aimed at reducing the kingdom's dependence on oil and positioning it as a regional hub for technology and innovation. Read:
Bloomberg
30-04-2025
- Business
- Bloomberg
Tech CEOs Meet With Lawmakers for National Security Summit
Silicon Valley's growing influence in Washington will be on full display Wednesday as tech titans and venture capitalists gather with top US lawmakers for a summit focused on how cutting-edge technologies can bolster national security and American manufacturing. Nvidia Corp. Chief Executive Officer Jensen Huang, Oracle Corp. CEO Safra Catz and Alphabet Inc. President Ruth Porat are slated to speak at the Hill and Valley Forum, alongside a bipartisan group of US senators and representatives, including House Speaker Mike Johnson.
