Could Oracle Be the Next Nvidia?

Core Insights - Nvidia has emerged as a leader in the AI revolution, achieving record revenue and a significant increase in stock price, with shares soaring 1,100% over the past three years [1][2] - Oracle is being considered as a potential successor to Nvidia in the AI space, especially after delivering a strong growth forecast [3] Company Comparisons - Both Nvidia and Oracle have a long history, with Nvidia founded in 1993 and Oracle in 1977, and both have evolved their technologies over time [5] - The co-founders of both companies, Jensen Huang for Nvidia and Larry Ellison for Oracle, remain actively involved, which is seen as a positive factor for their commitment to the companies [6] - Both companies recognized the AI opportunity early, with Nvidia focusing on AI-optimized GPUs and Oracle investing in cloud infrastructure paired with its database capabilities [7][12] Financial Performance - Oracle's stock experienced a 35% increase in one trading session following its growth forecast announcement [9] - Oracle expects its cloud infrastructure revenue to grow from $18 billion in the current fiscal year to $144 billion in four years, indicating strong future potential [13] - Nvidia predicts that AI infrastructure spending could reach $4 trillion over the next five years, supporting the notion that Oracle's revenue could significantly increase during this AI boom [14] Market Position and Valuation - Oracle faces competition from other cloud providers, similar to Nvidia's competition among chip designers, but its unique combination of database strengths and AI services may help it stand out [15] - If Oracle's shares were to triple, its market cap would reach approximately $2.7 trillion, which is still below some of the largest tech companies [15] - Oracle is currently trading at 48 times forward earnings estimates, which is higher than Nvidia's 39 times, but this is not considered excessively high for a tech stock [16]