The Motley Foolยท2025-06-21 10:55Group 1: Oracle - Oracle's stock recently reached a new high following a strong earnings report for its fiscal fourth quarter, driven by accelerating growth in cloud services [3][5] - Cloud revenue grew 27% year over year last quarter, with projections for fiscal 2026 cloud revenue to grow over 40% compared to fiscal 2025, leading analysts to raise earnings estimates [5][6] - Revenue from cloud infrastructure services increased by 52% year over year, with expectations for further acceleration, supported by Oracle's involvement in the Stargate project with OpenAI, which aims to build $500 billion worth of AI infrastructure in the U.S. over the next four years [6][8] Group 2: Broadcom - Broadcom benefits from strong demand for cloud providers, supplying semiconductors, software, and networking products for data centers, as well as chips for smartphones [10] - Over the last decade, Broadcom's revenue and earnings grew at an annualized rate of 28%, reflecting a strategy focused on profitable long-term growth opportunities, particularly in AI infrastructure [11] - AI semiconductor revenue grew 46% year over year last quarter, reaching $4.4 billion, which constitutes 30% of Broadcom's total revenue [12] - Networking products for AI surged 170% year over year, with the new Tomahawk 6 Ethernet switch capable of delivering 102.4 terabits per second of data capacity, enhancing performance for AI model training [14] - Broadcom's stock typically trades at a high earnings multiple, with a forward P/E ratio currently at 37, indicating potential upside as the company continues to deliver strong growth [15]