Shares of Oracle taking a hit today, but the software company is enjoying a monster run since its first quarter earnings report and the reported $300 billion cloud deal with OpenAI. For a deeper dive into Oracle, let's bring in now Corey Johnson, chief market strategist at Apistrophe Capital Research and host of the Drill Down podcast. Corey, my friend, always great to see you.So, listen. All right, Oracles in the red today, but it's after this just remarkable move yesterday. You have been pounding the tabl ...

Core Insights - Oracle's stock has increased by 79% year-to-date, with a notable rise of 39% on September 10 following the announcement of its fiscal first-quarter results [2][4] - The company's quarterly revenue reached $14.9 billion, a 12% increase from the previous year, although it fell slightly short of Wall Street's expectations of $15 billion [4] - The significant driver of Oracle's stock surge was its backlog of business, which increased dramatically [4][5] Financial Performance - Earnings per share for the quarter were $1.47, reflecting a 6% year-over-year increase, but were a penny below expectations [4] - Oracle anticipates a 77% surge in revenue from its cloud infrastructure unit this year, projecting $18 billion [5] - The company's remaining performance obligations, which represent expected future revenue from signed contracts, surged to $455 billion, marking a 359% increase [5] Market Demand and Contracts - Oracle signed four multibillion-dollar contracts with three different customers during the latest quarter, indicating strong demand for its cloud infrastructure [5][6] - CEO Safra Katz expressed confidence in signing additional multibillion-dollar customers, highlighting the growing demand for Oracle's cloud services [6] Strategic Developments - Oracle plans to deliver an additional 37 data centers to major tech companies like Microsoft, Alphabet, and Amazon over the next few years, increasing the total to 71 [7] - The multicloud-based revenue from these tech giants soared over 1,500% in the quarter, showcasing the robust demand for Oracle's services [6] Leadership and Market Position - Oracle Chairman Larry Ellison's wealth increased by $90 billion to over $380 billion, positioning him just behind Elon Musk as one of the world's richest individuals [9] - The company's strong performance has made it a valuable stock for shareholders, reinforcing its competitive position in the market [10]

Group 1: Market Representation - The "Magnificent Seven" no longer accurately represents leading growth stocks without Broadcom and Oracle, which have achieved all-time highs in stock prices [1] - The "Ten Titans" now include Broadcom, Oracle, and Netflix, collectively holding nearly the same market cap as Apple and comprising 39.1% of the S&P 500, compared to 33.7% for the Magnificent Seven [2] Group 2: Company Performance and Growth - Broadcom's stock price surge reflects how AI is transforming previously stagnant investment theses, moving from a dividend-paying company to a leader in AI infrastructure [5][6] - Broadcom's AI chips, known as XPUs, are in high demand from cloud computing giants, showcasing the company's diversification beyond just AI [7][8] - Oracle's cloud infrastructure segment is projected to grow significantly, with estimates of 77% growth in fiscal 2026 and reaching a $144 billion business by fiscal 2029 [9] Group 3: Competitive Positioning - Oracle has shifted from a traditional business-to-business model to a competitive player in cloud computing, leveraging its pricing model to attract customers [10][11] - Both Broadcom and Oracle are seen as key investments in high-growth sectors, with their stock prices reflecting future growth potential rather than current earnings [12] Group 4: Market Impact - The growth of Broadcom and Oracle indicates a shift in market dynamics, suggesting that the Ten Titans are more relevant for understanding market movements than the Magnificent Seven [13] - The performance of the S&P 500 is closely tied to the Ten Titans, with their valuations driven by future earnings expectations [14] - Oracle's strong quarterly results positively impacted the stock prices of Broadcom and Nvidia, highlighting the interconnectedness of these companies within the market [15]

Core Viewpoint - Oracle has significantly transformed its business model and is poised for substantial growth in the cloud infrastructure market, potentially reaching a market cap of $1 trillion, driven by aggressive capital expenditures and strategic partnerships [2][4][16]. Group 1: Financial Performance and Growth Projections - Oracle's stock has seen a remarkable increase of 36% on September 10, with a total rise of over 470% in the last five years [1]. - The company reported a 77% revenue growth forecast for Oracle Cloud Infrastructure (OCI) in fiscal 2026, potentially reaching $18 billion in revenue [9]. - Long-term projections indicate OCI revenue could grow to $32 billion in fiscal 2027, $73 billion in fiscal 2028, $114 billion in fiscal 2029, and $144 billion in fiscal 2030 [10]. Group 2: Capital Expenditures and Market Position - Oracle's capital expenditures as a percentage of revenue have surged to 0.47, significantly higher than competitors like Meta Platforms at 0.35 and the "big three" cloud providers at less than 0.24 [6]. - The company is expanding its cloud infrastructure aggressively, with plans to build 47 new multicloud data centers over the next 12 months, averaging nearly one new data center per week [5]. Group 3: Market Demand and Strategic Partnerships - Oracle's unique cloud offering and pricing model cater to existing database service customers, enhancing its competitive edge [12]. - The company has secured a $300 billion contract with OpenAI, indicating strong demand for its cloud services and the ability to compete with major players like AWS, Microsoft Azure, and Google Cloud [14]. - Oracle's remaining performance obligation (RPO) backlog has reached $455 billion, a 359% increase, showcasing robust future revenue potential [13]. Group 4: Industry Impact and Competitive Landscape - Oracle's recent performance and guidance have positioned it as a leading AI growth stock, challenging the dominance of the major cloud infrastructure providers [16]. - The company's integrated cloud and enterprise software solutions are utilized by 98% of Fortune 500 companies, suggesting a strong existing customer base that may lead to increased bundling of services [15].

Group 1 - Advanced Micro Devices, Inc. (AMD) is considered one of the best long-term tech stocks to buy, with HSBC reiterating a 'Buy' rating but lowering its price target from $200 to $185 due to concerns over the average selling price of the M1355 chip [1][2] - The average selling price of AMD's M1355 chip is projected to be $23,000, down from $25,000, leading to a reduction in the 2026 AI GPU revenue estimate from $15.1 billion to $13.9 billion [2][3] - Despite the lowered revenue estimate, it remains 20% above consensus estimates, indicating that Wall Street may be underestimating AMD's AI GPU business [3] Group 2 - AMD is expected to benefit from major cloud service providers like Meta, Microsoft, and Oracle as they begin testing its M1400 rack solution, which is anticipated to diversify the company's revenue base [3] - AMD specializes in high-performance computing and visualization products, including CPUs and GPUs, with applications in AI, cloud computing, and other markets [4]

For a few hours this week. The richest person in the world wasn't Elon Musk. It was Larry Ellison whose personal fortune suddenly skyrocketed.Larry Ellison's net worth soared by $89 billion. That was the biggest one day gain ever recorded on the Bloomberg Billionaires Index. The cause of this giant leap.The company Ellison co-founded. Oracle just had a bit of a moment. Oracle shares have surged pre-market after the company posted a major increase in bookings and gave an aggressive outlook for its cloud infr ...

Group 1 - Astera Labs has recently experienced a significant stock breakout, reaching record highs during the stock market rally [1][2] - The company specializes in high-bandwidth, low-latency semiconductor connectivity systems, particularly for cloud computing and AI data centers [1] - Astera Labs' product offerings include digital signal processor retimers, which serve as signal boosters [1] Group 2 - The stock of Astera Labs is featured on Investor's Business Daily's IPO Leaders screen, indicating strong market interest [1] - The company has shown positive performance, surpassing Q2 targets and providing an optimistic guidance for future earnings [4] - Astera Labs is recognized as a key player in the AI connectivity chip sector, highlighting its importance in the evolving technology landscape [4]

Core Insights - Fabrinet's position as a leading optical packaging specialist is increasingly strategic due to the industry's shift towards higher bandwidth requirements and advanced data center architectures [1] - The demand for optical packaging is expected to remain strong, driven by artificial intelligence workloads and cloud computing expansion [2] - The complexity of modern optical packaging is increasing as networks migrate to higher speeds, supporting premium revenue streams [3] - High-performance computing (HPC) is expected to further expand demand for advanced optical packaging, with Fabrinet recognizing its unique requirements [4] - Competition in the optical packaging market is intensifying, with rivals like Lumentum Holdings and Coherent Corp also targeting similar demand trends [5] - Fabrinet's share price has significantly outperformed industry averages, reflecting strong market performance [6] - The stock is currently trading at a forward Price/Sales ratio higher than the industry average, indicating a premium valuation [9] - The Zacks Consensus Estimate for Fabrinet's earnings indicates strong year-over-year growth expectations [11] Group 1 - Fabrinet's expertise in precision optical assembly and packaging technologies positions it at the center of infrastructure developments reshaping global connectivity [1] - Optical communications revenue reached $689 million in Q4 fiscal 2025, up 15% year over year, with telecom revenue climbing 46% to $412 million [2] - The sophistication of optical packaging supports premium revenue streams, with 800G and faster products generating $313 million in the quarter, up 21% from the prior year [3] Group 2 - The decision to classify HPC as a distinct revenue category reflects its unique requirements and growth potential [4] - Lumentum Holdings and Coherent Corp are also well positioned to benefit from the same drivers of AI workloads and cloud computing expansion [5] - Fabrinet's shares have jumped 64.7% YTD, outperforming the Zacks Electronics-Miscellaneous Components industry and the Zacks Computer and Technology sector [6] Group 3 - Fabrinet's stock is trading at a forward 12-month Price/Sales ratio of 3.05X compared to the industry's 2.08X [9] - The Zacks Consensus Estimate for Fabrinet's first quarter fiscal 2026 earnings is pegged at $2.83 per share, indicating 18.41% year-over-year growth [11]

Core Insights - Arista Networks has experienced significant growth over the past decade, primarily due to its innovative software-based networking solutions that compete effectively with established players like Cisco Systems [2][4] - A $10,000 investment in Arista Networks made in mid-September 2015 would be worth approximately $356,280 today, reflecting an average annualized return of about 42% [4] - The rapid growth of artificial intelligence data centers has been a major driver of Arista's recent performance, although the explosive growth phase may be behind [5][6] Company Positioning - Arista Networks is well-positioned to benefit from the ongoing expansion of the artificial intelligence hardware market, which is expected to grow at an average annual rate of 18% through 2034 [7] - The company's customizable and reprogrammable networking equipment offers a cost-effective long-term solution for AI data center operators [9] Investment Considerations - While the next decade may not yield returns as high as the previous one, Arista Networks still presents significant growth opportunities [6][9] - Analysts have identified other stocks that may offer better investment prospects than Arista Networks at this time [8]

Group 1: Open Door - Open Door has seen significant gains recently, with its stock price rising from the mid-$3 range to the $9 range, indicating a strong short squeeze and bullish sentiment [3][9] - The stock's price activity has been volatile, forming a broadening triangle pattern, suggesting increasing swings and a challenging trading environment [5][6] - A potential support level is identified around $7.30 to $7.40, with expectations of price retreating to previous resistance levels that may now act as support [7][10] Group 2: Rocket Companies - Rocket Companies is expected to benefit from potential mortgage refinancing activity as interest rates may be cut, which could drive more business [12][14] - The stock has shown a breakout above $17, with a supportive area identified around $20.50, indicating a bullish trend [14][16] - Heavy trading volume has been observed, suggesting strong conviction among traders, with significant volume spikes above the 50-day moving average [18] Group 3: Terawulf - Terawulf, a Bitcoin mining company, has made significant moves this year, with a bullish outlook as the fall and winter seasons are typically favorable for crypto [20][22] - The stock has shown a cup and handle pattern, indicating a potential for further upward movement if it can hold above the $10 to $10.50 level [23][25] - Key technical levels to watch include the $9 level, which serves as a volume node and support area [26] Group 4: Iron - Iron has experienced a notable breakout and consolidation phases, with a strong performance in the AI and crypto sectors [28][30] - The stock is viewed positively due to its stability compared to Terawulf, with a focus on data centers and cloud computing [30]