Forbes·2025-09-13 15:38Core Insights - Oracle's significant increase in AI-related contracts indicates a robust growth trajectory for artificial intelligence spending and the tech sector overall [2][3] Market Performance - The S&P 500 reached an all-time high, with a slight decline following, while the Magnificent 7 companies outperformed, bolstered by Oracle's earnings which support the AI growth narrative [3] - Capital spending by AI leaders such as Alphabet, Amazon, Meta Platforms, and Microsoft is projected to exceed $400 billion by 2026, creating a positive cycle of spending and earnings for major tech companies [5] Oracle & Artificial Intelligence - Oracle has become a key player in the AI market, benefiting from high demand for AI training and inferencing, with its architecture providing a competitive edge [6] - Oracle's remaining performance obligation (RPO) reached $455.3 billion, with a quarter-over-quarter increase of $317.5 billion from AI-related contracts, indicating strong future revenue potential [7][8] Revenue Growth Projections - Analysts expect Oracle's revenue growth to accelerate from 8.4% year-over-year for fiscal 2025 to 21.9% in 2027, driven by the demand for AI services [8]