ZACKSยท2025-09-12 20:00Core Insights - Oracle Corporation has gained significant attention due to its multi-billion-dollar contracts with AI companies, leading to a 90% stock increase this year, outperforming NVIDIA's 48.7% gain [1] - Oracle's fiscal 2026 first-quarter revenues reached $14.9 billion, an 11% year-over-year increase, while its remaining performance obligation (RPO) surged to $455 million, up 359% year over year [1][2] Oracle's Performance - Oracle's infrastructure-as-a-service (IaaS) revenues rose by 55%, and cloud revenues increased by 28% in the reported quarter, indicating strong demand for its cloud services [3] - Management projects Oracle Cloud Infrastructure (OCI) revenues to grow to $18 billion in fiscal 2026, with further increases expected to $32 billion, $73 billion, $114 billion, and $144 billion in the following fiscal years [4] NVIDIA's Performance - NVIDIA reported a 56% year-over-year revenue increase to $41.1 billion in its data center operations, driven by strong sales of its GPUs [5] - The company's net income climbed 59% to $26.42 billion, showcasing its effective cost management and strong market position in AI hardware [7] Investment Comparison - Both Oracle and NVIDIA are positioned to benefit from the AI boom, with Oracle's cloud revenues projected to reach $144 billion by fiscal 2030, while NVIDIA continues to dominate the AI software and hardware market [8] - Despite Oracle's strong performance, NVIDIA is considered a better investment due to its lower debt-to-equity ratio of 8.5% compared to Oracle's 333.4%, and a higher net profit margin of 52.4% versus Oracle's 21.7% [9][10]