Prediction: Oracle Stock Will Soar After Oct. 16

Core Viewpoint - Oracle is emerging as a significant player in the AI market, alongside established names like Nvidia and Palantir Technologies, with a notable increase in revenue from AI customers and a substantial stock price surge earlier this year [1][2]. Group 1: Oracle's AI Growth - Oracle has focused on cloud infrastructure, leading to substantial revenue growth as AI customers seek capacity for their workloads [4]. - In the recent quarter, Oracle reported a 55% increase in cloud infrastructure revenue to $3.3 billion, and remaining performance obligations (RPO) surged 359% to $455 billion [5]. - CEO Safra Catz described the quarter as "astonishing" and indicated expectations of signing several more multibillion-dollar customers, with RPO potentially surpassing half a trillion dollars [6]. Group 2: Profitability Concerns - Recent stock price declines have raised investor concerns about profitability, particularly regarding gross margins from major AI contracts, which average only 16% [7]. - Analysts suggest that initial narrow margins may expand as Oracle scales its operations and as customers grow their AI projects [8]. - Mizuho has maintained a bullish stance on Oracle, emphasizing the long-term growth potential in the AI market despite concerns about gross margins [9]. Group 3: Upcoming Financial Updates - Oracle is expected to provide updates on long-term financial forecasts during the AI World event on October 16, which may alleviate investor concerns [10]. - Given the optimistic comments from the recent earnings report and the high demand for AI capacity, a negative surprise is not anticipated [11]. - Positive updates could enhance stock performance, with predictions that Oracle's stock may rise following the October 16 event [12].