Oracle Shares Jump 40% on Bullish AI Outlook

Order Book & Revenue - Oracle's order book is approximately $450 billion, which is expected to translate into revenue over the coming years as data centers become operational [1] - An analyst estimates a potential $60 billion upside for Oracle by the end of the decade, based on Oracle's guidance relative to consensus expectations [4] AI & Cloud Strategy - Oracle is renting out GPUs to customers for AI model training and inference workloads, similar to neo cloud providers [2] - Oracle's high-margin software and applications business provides funding for expansion capacities, differentiating it from neo cloud companies that rely on borrowing [3] - Oracle is providing computing capacity for hosting applications and training large or small language models, addressing a current shortage in computing capacity [6] Competitive Landscape - There is a massive shortage of computing capacity, benefiting various cloud providers including Oracle, Amazon, and Azure [7] - Oracle's cloud infrastructure revenue was approximately $10 billion in the last financial year, compared to Amazon's $125 billion and Azure's $75 billion [8] Strategic Shift - Oracle's pivot towards cloud services started around 2017-2020, initially focused on its own database business [9] - Oracle is buying chips from Nvidia to build its latest infrastructure [5]