ORCL Becoming "Fourth Hyperscaler?" Steven Dickens on Oracle's "Core" A.I.

Core Insights - Oracle is currently in the spotlight due to its AI World 2025 event in Las Vegas, coinciding with the start of the earnings season [1] - The company's stock has surged nearly 30% since early September, driven by projections of significant growth in cloud and AI sectors [2] - Oracle is recognized as the fourth hyperscaler, outpacing competitors like AWS, Google, and Microsoft Azure, with growth rates of 50-60% quarter-on-quarter compared to peers at around 30% [4][13] Company Performance - Oracle has $455 billion in remaining performance obligations, indicating strong future revenue potential [5] - The partnership with AMD for 50,000 new GPUs is a strategic move to enhance its AI capabilities [4][7] - The company is focusing on a modular approach to cloud deployment, allowing for smaller footprints and a comprehensive service portfolio [8] Market Position - Oracle's AI data platform is integrated with 600 agents in its Fusion and Netsuite applications, with announcements of partnerships with major firms like IBM and Accenture [9][10] - The company is positioned to compete effectively against Salesforce and others in the AI framework space, leveraging both infrastructure and application capabilities [10] Financial Outlook - Oracle is perceived as having a competitive edge in cloud infrastructure pricing, which is crucial for gaining market share [13] - The company maintains a profitable business mix, with strong fundamentals across its various segments, including its core database franchise [14]