Hua Er Jie Jian Wen·2025-09-11 01:24Core Viewpoint - Oracle is transforming from a traditional database company to a key player in the AI infrastructure wave, with a bold prediction of doubling its revenue in the next three years, making it a hot investment opportunity akin to "the new Nvidia" [1] Group 1: Financial Performance - Oracle's remaining performance obligations (RPO) grew over twofold in three months, reaching $455 billion, with expectations of surpassing $500 billion soon due to ongoing negotiations for additional multi-billion dollar contracts [1] - The company forecasts its cloud infrastructure revenue to reach $114 billion by fiscal year 2029, a significant increase from just over $10 billion as of May this year [1] - Following this news, Oracle's stock price surged 35% on Wednesday, marking a nearly 100% increase year-to-date and bringing the company's market capitalization close to $950 billion [1] Group 2: Competitive Landscape - Oracle's bold predictions stand out in a market where competitors like Microsoft, Google, and Amazon do not separately report AI-related revenues, reflecting a unique confidence in the sustainability of the AI trend [3][4] - The company is led by Chairman Larry Ellison, known for his boldness in the tech industry, which contributes to Oracle's distinct approach in the competitive landscape [3][4] Group 3: Challenges and Opportunities - The key challenge for Oracle lies in converting its RPO into actual revenue, which depends on the company's ability to build the necessary infrastructure to fulfill these contracts, including power, licenses, and critical equipment like Nvidia GPUs [5] - Analysts highlight Oracle's significant advantages, including top-tier technical expertise, ample funding, and deep support from Nvidia, positioning it well to capitalize on the growing demand for AI training and inference [6] - The shift in AI focus from training to inference is expected to provide Oracle with a more stable revenue source, although the company has set ambitious targets with a forward P/E ratio of approximately 48 times [6]