Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/threads/oracle-stock-soars-as-ceo-says-ai-fueled-cloud-revenue-set-to-soar-to-144-billion.23584/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021770
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

Oracle stock soars as CEO says AI-fueled cloud revenue set to soar to $144 billion

hist78

hist78

Well-known member
Oracle (ORCL) stock jumped more than 25% in after-hours trading Tuesday as the software giant said its AI-fueled cloud revenue is set to jump to $144 billion by its 2030 fiscal year — a massive leap from the company's projection of less than $20 billion for the business in its current fiscal year.

"We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years," said CEO Safra Catz in a statement Tuesday.


 
hist78 said:
Oracle (ORCL) stock jumped more than 25% in after-hours trading Tuesday as the software giant said its AI-fueled cloud revenue is set to jump to $144 billion by its 2030 fiscal year — a massive leap from the company's projection of less than $20 billion for the business in its current fiscal year.

"We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years," said CEO Safra Catz in a statement Tuesday.

Click to expand...

Why not $500Bn

I am sure their customers will feel the benefit.

All this extra revenue all these.AI companies going to make , the "printing machines" will be going off the scale
 
Good for them, but dunno, from the brief reading on Oracle they are big in regulated industries like healthcare where data security and backup is paramount. So if healthcare AIs are working with patient data, that may mean Oracle is needed?
 
bilau said:
Are these firm contracts? Is there such a thing as double, triple booking in the cloud business as in the IC world?
Click to expand...

They should have firm contracts with their hosting clients. However, we have no way of knowing what kinds of cancellation, modification, scale-down, or postponement clauses those contracts might contain.
 
Daniel Nenni said:
I always thought Oracle was the NOT Amazon or NOT Google cloud solution? How are they differentiating?
Click to expand...
Oracle differentiates by being a cloud provider which focuses on enterprise application and system requirements, while Azure, AWS, and Google Cloud are trying to be everything to every potential cloud computing customer, especially non-enterprise customers. Oracle's cloud security strategy is seen as more comprehensive and generally superior, especially in cloud networking. Oracle's hybrid cloud support (meaning support for integration of hardware in customer datacenters) is seen as superior. One popular feature Oracle has is 10TB of free data exporting from their cloud to local systems every month. Their competitors make it expensive to export data from the cloud. There are a lot of examples of where Oracle's cloud is seen as more serious for enterprise users than the competition.

It would take a lot of investigation to determine how much of these enterprise systems and customer advantages are real or just subtle and marketing. Some look real to me. I do strongly suspect that the Oracle field teams know more about how to talk to enterprise customers than the other guys do. Enterprise IT people are different.

Regardless, I don't agree that the Oracle Cloud market is the Not Google, AWS, or Azure market.
 
Daniel Nenni said:
I always thought Oracle was the NOT Amazon or NOT Google cloud solution? How are they differentiating?
Click to expand...

Don’t skip the mighty Microsoft.

I believe Oracle is currently focused on a few of its largest customers, while Google, Amazon, and Microsoft are working with customers of all size. From small players (like SemiWiki.com?) to major companies (like US government, Netflix, Apple, and even Google, Amazon, and Microsoft themselves).

Also, Oracle is one of the investors of the Stargate AI project (SoftBank, OpenAI, Oracle, and MGX). That will help a lot.
 
blueone said:
Oracle differentiates by being a cloud provider which focuses on enterprise application and system requirements, while Azure, AWS, and Google Cloud are trying to be everything to every potential cloud computing customer, especially non-enterprise customers. Oracle's cloud security strategy is seen as more comprehensive and generally superior, especially in cloud networking. Oracle's hybrid cloud support (meaning support for integration of hardware in customer datacenters) is seen as superior. One popular feature Oracle has is 10TB of free data exporting from their cloud to local systems every month. Their competitors make it expensive to export data from the cloud. There are a lot of examples of where Oracle's cloud is seen as more serious for enterprise users than the competition.

It would take a lot of investigation to determine how much of these enterprise systems and customer advantages are real or just subtle and marketing. Some look real to me. I do strongly suspect that the Oracle field teams know more about how to talk to enterprise customers than the other guys do. Enterprise IT people are different.
Click to expand...
Think your're right on all this - they are more serious on cloud for enterprise. Plus they have done an excellent job on data center real estate and energy "capture". This is an excellent article on how they have managed to do it (came out at the end of June, well before this "beat").

I've also seen some insights that show they are more willing to work directly with AMD, Intel, NVIDIA and enterprises to leverage off-the-hardware-shelf solutions vs. forcing enterprises into canned Amazon, Azure and Google infrastructures that don't neatly meet many enterprise requirements.
 
Larry Ellison’s $100 Billion Morning Is Not Just Driven By Oracle’s Share Jump

The world’s second-richest person had the single best day ever for a billionaire. Here’s what made it possible and it’s not just what you think.

www.forbes.com

How FInancial Engineering Helped Lead To Larry Ellison’s $100 Billion Day

The world’s second-richest person had the single best day ever for a billionaire. Here’s what made it possible and it’s not just what you think.
www.forbes.com www.forbes.com
 
Reality check here -

"We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years," said CEO Safra Catz in a statement Tuesday."

Roughly speaking, if last year was ~ $10B ( * 1.77 = ~ $18B), the CEO is saying:

2024 = 1.0X
2025 = 1.77X
2026 = 3.2X
2027 = 7.3X
2028 = 11.4X
2029 = 14.4X

Oracle is claiming a >7X increase in 3 years and >14X increase in Cloud infrastructure revenue in 5 years?

This seems.. insanely aggressive?

...

Also, Grok thinks the top 5 CI providers are as follows*:

1. AWS - 30% Market share
2. Microsoft - 20%
3. Google - 13%
4. Alibaba - 4%
5. Oracle - 3%

*Based on this source: https://www.crn.com/news/cloud/2025...-2025-microsoft-dips-aws-still-kingpin?page=1
 
hist78 said:
Here’s what made it possible and it’s not just what you think.
Click to expand...
Interesting:

Stock buybacks plus this:

“We will build and operate more cloud infrastructure data than all of our cloud infrastructure competitors combined,” Ellison, 81, said on Tuesday’s earnings call. “Oracle runs everywhere.”
 
Xebec said:
Oracle is claiming a >7X increase in 3 years and >14X increase in Cloud infrastructure revenue in 5 years?

This seems.. insanely aggressive?
Click to expand...
The article I linked to makes the case that Oracle took a risk and got out ahead of the pack CI providers with an AI-first data center offering in two key geographies locking up ready sites and power contracts. Worth reading, especially since the analysis came ahead of the numbers.
 
hist78 said:
Larry Ellison’s $100 Billion Morning Is Not Just Driven By Oracle’s Share Jump

The world’s second-richest person had the single best day ever for a billionaire. Here’s what made it possible and it’s not just what you think.

www.forbes.com

How FInancial Engineering Helped Lead To Larry Ellison’s $100 Billion Day

The world’s second-richest person had the single best day ever for a billionaire. Here’s what made it possible and it’s not just what you think.
www.forbes.com www.forbes.com
Click to expand...
What a silly article. The writer makes a big deal about Ellison taking loans with his stock holdings as collateral, rather than just selling the stock. I think I read two or three articles per month that make a big deal out of this "billionaires' trick". Hasn't the ignoramus writer ever heard of a home equity loan? Millions of Americans use them to keep from having to sell their homes when they want to raise capital.

Is there some kind of unwritten rule in the popular press I'm not aware of that "staff writers" have to be of below-average intelligence?
 
KevinK said:
The article I linked to makes the case that Oracle took a risk and got out ahead of the pack CI providers with an AI-first data center offering in two key geographies locking up ready sites and power contracts. Worth reading, especially since the analysis came ahead of the numbers.
Click to expand...

Fair, but capacity availability is only one part of the equation -- people will actually have to buy and be able to use Oracle Cloud Infrastructure, and that's 5 fiscal years of huge growth predicted, in a market that is further along the S-Curve (maturity) than most people think.

Some companies that are desperate for AI (X, Tesla) just build their own sites rather than use commercial cloud.. so there's bleeding away from traditional cloud providers happening too..

I'm not taking a bet either way, but I think the Oracle CEO is experiencing AI hallucinations.
 
Xebec said:
I'm not taking a bet either way, but I think the Oracle CEO is experiencing AI hallucinations.
Click to expand...
I doubt it. I've met Safra Catz, and she might be the most impressive CEO that I've ever encountered. This is a person who can stay cool and add value with Larry Ellison as her boss (he's executive chairman) and chief technology officer. Imagine, the CEO reporting to the CTO. And in 2014 Ellison hired his tennis buddy Mark Hurd to be her co-CEO at Oracle, after Hurd got fired from HP for a sexual harassment tussle. After Hurd died in 2019, Catz has been the sole CEO. An amazing long-term performance, unrivaled by any situation I've ever heard about.
 
KevinK said:
Interesting:

Stock buybacks plus this:

“We will build and operate more cloud infrastructure data than all of our cloud infrastructure competitors combined,” Ellison, 81, said on Tuesday’s earnings call. “Oracle runs everywhere.”
Click to expand...

At the age of 81, he deserves the right to say whatever he wishes. 😀
 
Xebec said:
Reality check here -

"We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years," said CEO Safra Catz in a statement Tuesday."

Roughly speaking, if last year was ~ $10B ( * 1.77 = ~ $18B), the CEO is saying:

2024 = 1.0X
2025 = 1.77X
2026 = 3.2X
2027 = 7.3X
2028 = 11.4X
2029 = 14.4X

Oracle is claiming a >7X increase in 3 years and >14X increase in Cloud infrastructure revenue in 5 years?

This seems.. insanely aggressive?

...

Also, Grok thinks the top 5 CI providers are as follows*:

1. AWS - 30% Market share
2. Microsoft - 20%
3. Google - 13%
4. Alibaba - 4%
5. Oracle - 3%

*Based on this source: https://www.crn.com/news/cloud/2025...-2025-microsoft-dips-aws-still-kingpin?page=1
Click to expand...

Larry Ellison and Elon Musk often speak about bold, huge things. As long as they achieve one or two successes people usually overlook what doesn’t work out.
 
You must log in or register to reply here.
Back
Top