Core Insights - Oracle has a current market share of 3% in the cloud sector, indicating significant potential for growth and expansion in this market [1] - The author believes that Oracle's position as a cloud underdog presents a strong upside opportunity for investors [1] Company Background - Oracle is positioned within the technology sector, focusing on growth stocks with potential for above-market returns [1] - The company emphasizes innovation, scalability, and market disruptiveness as key factors for its growth strategy [1] Investment Strategy - The investment approach includes a long-short strategy on indices, utilizing macroeconomic analysis to navigate market cycles [1] - The focus is on identifying companies that can deliver substantial returns over the medium term, particularly in the technology sector [1]

Core Insights - The Stargate Project, a $500 billion initiative led by OpenAI, Oracle, and SoftBank, aims to create the world's largest AI infrastructure in the U.S., with AMD's next-generation chips potentially playing a crucial role [1] - AMD's CTO indicated that the MI400 chips are designed for mass scale capability, making them suitable for integration into the Stargate Project [2] - Oracle has announced plans to offer zettascale AI clusters powered by AMD's Instinct GPUs, which are essential for the massive workloads required by the Stargate Project [3] Industry Context - The demand for AI hardware has surged following the rise of generative AI, leading to a shortage of NVIDIA chips, which are currently the industry standard [4] - This supply crunch has created an opportunity for AMD to provide alternatives that meet the unprecedented scale and performance needs of AI deployments like Stargate [4] - AMD's collaboration with Oracle positions the company to capture a significant share of the AI hardware market, addressing the growing need for scalable compute power [5]

Group 1 - Oracle Corporation is increasingly recognized as a significant player in the cloud market, competing with larger hyperscale peers [1] - The company's Remaining Performance Obligations (RPO) are expected to double in the fiscal year 2026, indicating strong future revenue potential [1] - Oracle is accelerating the development of its data center capacity to support its growth in the cloud sector [1]

Core Insights - IBM and Oracle are key players in the hybrid cloud infrastructure and database services market, with both companies focusing on hybrid cloud and AI to meet evolving enterprise demands [3][4][10] Group 1: IBM - IBM is expected to benefit from strong demand for hybrid cloud and AI, which will drive growth in its Software and Consulting segments [4] - The company has made strategic acquisitions, including HashiCorp, StreamSets, and webMethods, to enhance its hybrid multi-cloud capabilities and AI platform [5] - Despite growth potential, IBM faces significant competition from Amazon Web Services and Microsoft Azure, along with challenges related to pricing pressure and a complex business model transition [6] Group 2: Oracle - Oracle's cloud infrastructure business has shown robust growth, with Infrastructure-as-a-Service revenue increasing by 51% to $10.2 billion and total cloud services rising by 24% year over year to $24.5 billion [7] - The company anticipates cloud infrastructure revenues to grow over 70% in fiscal 2026, driven by enterprises migrating critical workloads to the cloud [7][9] - Oracle's multi-cloud strategy introduces technical complexities and operational risks, which could impact service reliability and customer satisfaction [11] Group 3: Comparative Analysis - Over the past year, IBM's share price increased by 62.9%, outperforming the industry growth of 4%, while Oracle's shares rose by 47.5% [15] - IBM's forward P/E ratio is 25.11, which is lower than Oracle's 31.27, indicating a more attractive valuation for IBM [17] - Both companies are projected to improve sales and profits in 2025, but IBM's better price performance and valuation metrics suggest it may be a more favorable investment option compared to Oracle [20]

Group 1 - The core viewpoint indicates that the App Store's net income has increased by 12.5% year-to-date, surpassing Morgan Stanley's second-quarter forecast by 150 basis points, and reflecting a 40 basis point outperformance in the services business [1] - Morgan Stanley has raised its global cloud capital expenditure forecast for 2025 to $406 billion, representing a 43% year-on-year growth, which is an increase of 4 percentage points from the previous month [1] - The growth in cloud capital expenditure is driven by upward revisions from Oracle and Alibaba, indicating ongoing expansion in the cloud computing sector and strategic investments by industry giants [1] Group 2 - In the personal computer sector, the latest order delivery data for notebook ODMs shows a slight upward trend in second-quarter shipments, but there is high uncertainty regarding demand in the second half of 2025, leading to a cautious outlook for the third quarter [2] - Specifically, third-quarter notebook shipments are projected to be 10% lower than expected, with ODM order delivery volumes below normal seasonal levels [2] - The report also highlights a positive trend in IBM's consulting job postings, which have increased by 33% since the end of the first quarter, with a rolling 90-day average up by 36% [2]

Group 1 - Evercore highlighted key topics discussed with European investors, including artificial intelligence and Oracle Corporation's growth prospects, indicating a cautiously optimistic market sentiment among investors [1] - Interest in Oracle has significantly increased compared to six months ago, while interest in Salesforce (CRM.US) has declined [1] - Analysts expect Oracle's revenue growth rate to jump from 8.4% in the recently ended fiscal year to 16% in fiscal year 2026, with net profit projected to increase by 15% [1] Group 2 - Oracle anticipates a more than 70% surge in cloud infrastructure sales driven by strong demand for cloud AI computing resources and explosive growth in physical AI computing infrastructure [2] - Most analysts have raised their target prices for Oracle, emphasizing its robust cloud business growth and high remaining performance obligations (RPO) [2] - Bank of America Securities raised its target price for Oracle from $156 to $220 while maintaining a "neutral" rating, while Morgan Stanley kept its target price at $175 with a "market perform" rating, suggesting the current stock price may be undervalued if Oracle meets expectations [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-35992 Oracle Corporation (Exact name of registrant as specified in its charter) Delaware 54-2185193 (State or other jurisd ...

Core Insights - Oracle Cloud Infrastructure (OCI) is increasingly chosen by AI innovators for its scalability, performance, and cost efficiency in training AI models and deploying applications [1][2][3] Company Summaries - Fireworks AI utilizes OCI to serve over two trillion inference tokens daily, leveraging NVIDIA Hopper and AMD MI300X GPUs for optimized performance [3][4] - Hedra, an AI-driven video creation company, benefits from OCI's infrastructure to reduce GPU costs and improve training speeds, enabling rapid model releases [5][6] - Numenta focuses on enhancing deep learning systems' performance using OCI, achieving faster training speeds and increased learning cycles [6] - Soniox employs OCI to develop a multilingual speech AI model that recognizes speech in 60 languages with low latency and high accuracy [7][8] Industry Trends - The demand for reliable, secure, and highly available cloud infrastructure is growing as industries adopt AI for innovation and efficiency [2] - AI companies require high-performance GPU clusters for training, inference, and parallel computing applications, which OCI provides [2][3]

Group 1: Market Overview - Market volatility is increasing due to ongoing geopolitical tensions in the Middle East, with several stocks showing warning signs of being overbought [1] - Elevated relative strength index (RSI) indicates that some equities may be primed for a correction [1] Group 2: Oracle (NYSE: ORCL) - Oracle shares dipped 1.3% to close at $208.18, despite a strong fiscal fourth-quarter report, with the stock spiking almost 18% over the past week [2][3] - The 14-day RSI for Oracle has reached 79, indicating it is overbought [3] - For the quarter ending in May, Oracle reported revenue of $15.9 billion, an 11% year-over-year increase, surpassing analyst expectations [3] - CEO Safra Catz forecasted "dramatically higher" revenue growth for fiscal 2026, with cloud services projected to grow from 24% to 40% and cloud infrastructure expected to surge over 70%, up from 50% [4] - Oracle's partnerships, including a multibillion-dollar AI data center initiative with Stargate, OpenAI, and SoftBank, could attract up to $500 billion in private investment by 2029 [4] Group 3: Viasat (NASDAQ: VSAT) - Viasat shares closed up 0.53% at $13.16, with a weekly increase of almost 23% [5][9] - The 14-day RSI for Viasat is at 77.69, indicating it may also be overbought [9] - Viasat's expansion into satellite communications, including the deployment of two major satellites, has contributed to its stock rally [9] - The company secured a $568 million IDIQ contract with the U.S. General Services Administration to support military communications infrastructure modernization [10] - Despite solid fundamentals, Viasat's rapid stock ascent and high RSI may suggest the market is getting ahead [10]

Core Viewpoint - Oracle's stock surged after reporting strong fiscal Q4 results, with a market cap exceeding $600 billion, driven by robust cloud infrastructure growth and AI adoption [1][2][3] Financial Performance - Oracle's Q4 results surpassed consensus expectations, indicating a positive outlook for growth in the current fiscal year [2] - The company anticipates fiscal 2026 revenue to reach $67 billion, exceeding previous guidance of $66 billion [6] - Analysts have raised revenue growth expectations significantly due to Oracle's strong performance and growth prospects [9] Growth Catalysts - Oracle's remaining performance obligations (RPO) are projected to more than double in fiscal 2026, with an RPO of $138 billion at the end of fiscal 2025, reflecting a 41% year-over-year increase [7][8] - The company is expected to have around $280 billion in unfulfilled contracts by the end of the current fiscal year, indicating a strong revenue pipeline [11] - The global cloud computing market is projected to generate $2 trillion in revenue by the end of the decade, with significant opportunities in infrastructure-as-a-service and software-as-a-service [12] Capacity Expansion - Oracle plans to build 30 new dedicated data centers and increase multicloud data centers from 23 to 70 within the next 12 months, enhancing its capacity to capture market opportunities [13] Market Cap Projections - Consensus estimates suggest Oracle's earnings will increase by 12% in the current fiscal year, with potential for stronger growth in subsequent years [14] - Assuming a 20% annual earnings growth rate, Oracle's earnings per share could rise to $14.28 in five years, with a potential stock price of $381 by 2030, indicating a 77% upside from current levels [16][17] - Oracle's current market cap of $603 billion positions it well to exceed $1 trillion by the end of the decade, especially given its attractive valuation compared to the U.S. technology sector [18]