The Motley Foolยท2025-03-04 10:44Core Insights - The AI sector has significantly boosted the stock prices of companies like Oracle and Nvidia, with Oracle shares rising approximately 54% and Nvidia shares increasing by 70% over the past year [1][2] Oracle's AI Success - Oracle's revenue increased by 9% year over year to $14.1 billion in its fiscal second quarter, driven by a 24% growth in its cloud computing business, which generated $5.9 billion [3][5] - The growth in Oracle's cloud division is attributed to businesses needing computing infrastructure for AI training, leveraging Oracle's extensive data center network [4][5] - Oracle's earnings per share (EPS) rose 24% year over year to $1.10, reflecting the company's success in the AI space [5] - The company is expanding its data center footprint, aiming to operate thousands of facilities to support more customer business and increase revenue [6] Nvidia's AI Growth - Nvidia reported record quarterly revenue for the last seven quarters, with its latest fiscal fourth quarter revenue reaching $39.3 billion, a 78% increase from the previous year [7][8] - The company's data center sales grew by 93% year over year to $35.6 billion, driven by the demand for components necessary for AI systems [8] - Nvidia forecasts Q1 revenue for its 2026 fiscal year to be around $43 billion, a 65% increase from the prior year's Q1 sales of $26 billion [9] Investment Considerations - Both Oracle and Nvidia have strong financial performances, making it challenging to choose between the two as investments [10] - Nvidia's forward price-to-earnings (P/E) ratio has decreased, making its shares more reasonably priced compared to Oracle's [12][13] - The introduction of Nvidia's new Blackwell computing platform, which contributed $11 billion to its Q4 revenue, positions Nvidia as a compelling long-term investment in the AI sector [13]