Oracle Slides by Most Since January on Mounting AI Spending

Market Dynamics & Competition - Oracle claims it is not dependent on NVIDIA and can use any chip, highlighting potential competition in the AI chip market [1][8] - Concerns exist that NVIDIA could lose market share to competitors like Broadcom, especially with the potential commercialization of merchant TPUs [6] - The AI market is expected to widen, including more revenue from Broadcom, but NVIDIA is not out of the picture [7] - NVIDIA's strength lies in its multi-purpose, easy-to-use software, which supports its hardware, a factor that competitors need to address [8] - NVIDIA's R&D is world-class, and it will continue to innovate, challenging competitors [10] Capital Expenditure (CapEx) & Monetization - Oracle's estimated 2026 CapEx has increased significantly, over two and a half times higher than originally estimated, reaching the low 20 billion USD range from an initial 9 billion USD [2] - The current CapEx represents 75% of Oracle's full-year revenue [3] - The market is anticipating an inflection point where rapid AI monetization can absorb these high CapEx costs [3][4] - The speed of AI monetization, exemplified by Bloomberg Intelligence's "Eye Opener," shows the fastest run rate from 0 to 20 billion USD in tech history [4] Technology & Innovation - Software platform is needed on the training side, where NVIDIA currently has a near-monopoly [9] - As the market moves into inference, the COO demo matters less, but R&D and continuous iteration remain crucial [9][10]