Core Viewpoint - HSBC has identified Oracle and Salesforce as two U.S. stocks likely to outperform in the upcoming earnings season due to their strong competitive advantages and exposure to artificial intelligence growth [1] Group 1: Company Performance and Outlook - Oracle has a remaining performance obligation of $523 billion, reflecting a 433% year-over-year increase, indicating strong future revenue visibility [5] - In the latest quarter, Oracle secured $68 billion in new customer contracts, including significant clients like Meta and Nvidia [5] - Salesforce has launched Agentforce, integrating AI agents into its platform, which positions the company to meet the increasing demand for intelligent automation in enterprises [3] Group 2: Market Dynamics and Competitive Position - Both Oracle and Salesforce are expanding their AI capabilities in a rapidly evolving tech landscape, with Oracle's cloud infrastructure and autonomous database being critical for enterprises deploying AI applications [2] - Salesforce's AI-powered customer engagement tools and Oracle's cloud database offerings are addressing essential needs as businesses seek competitive advantages through technology [4] - The acceleration of AI infrastructure spending continues despite macroeconomic volatility, raising questions about whether these companies can convert their technological leadership into financial results that justify current valuations [4] Group 3: Financial Performance Metrics - Oracle's total cloud revenue reached $8 billion, marking a 33% year-over-year growth, surpassing the previous year's 24% growth [6] - Cloud infrastructure sales for Oracle increased by 66% to $4.1 billion, with GPU-related revenue soaring by 177%, showcasing its competitive edge in capturing AI infrastructure spending [6]