Oracle announced a joint initiative with Nvidia, the leading chip-maker, revealing quarterly profit that surpassed expectations. The surge in demand for generative AI technology fueled the impressive performance, resulting in a substantial increase in Oracle’s share value by nearly 14% during after-hours trading.
The 46-year-old tech giant has been strategically pivoting towards cloud computing, aiming to provide cost-effective services compared to competitors like Amazon. By forging partnerships with industry leaders such as Microsoft and Nvidia, Oracle has been able to enhance its cloud offerings and attract more subscribers.
CEO Safra Catz highlighted the overwhelming demand for Oracle’s Gen2 AI infrastructure, stating that the company is continuously expanding its cloud datacenter capacity to meet the growing needs of customers. Oracle executives emphasized the collaboration with Nvidia, hinting at an upcoming announcement that will further solidify their position in the market.
Despite posting quarterly revenue slightly below analysts’ estimates at $13.28 billion, Oracle’s profit of $1.41 per share exceeded expectations. The company’s strong performance in booked revenue and the outlook for revenue growth in the upcoming quarter indicate promising results.
Analyst Gil Luria from D.A. Davidson noted that while Oracle’s quarterly results were in line with expectations, investors are optimistic about the new business opportunities the company secured. The forecasted revenue growth of 4%-6% for the next quarter, although slightly below analysts’ estimates, reflects a positive trajectory for Oracle’s future performance.
