Oracle, a technology company, is focusing on artificial intelligence (AI) despite only having a 2% share of the cloud services market. The company’s entry into the AI market is well-timed, coinciding with the rapid growth of AI technology and the increasing demand for AI solutions. Oracle’s revenue from its Gen2 AI cloud platform saw a significant increase of 53% in the third quarter.
As AI becomes a more universal technology, enterprise customers are seeking customized AI cloud solutions that traditional vendors may not be able to provide. Oracle is addressing this need by offering flexible and innovative AI cloud configurations tailored to each company’s requirements. The company has formed partnerships with Microsoft and NVIDIA to enhance the flexibility and appeal of its AI cloud offerings.
Oracle’s growth strategy seems to be paying off, with its remaining performance obligations increasing to $80 billion in the third quarter. The company expects a significant portion of this to be booked as revenue within the next 12 months. Oracle’s shift from legacy database systems to AI cloud services is evident in its cloud revenue surpassing revenue from licensing operations. Despite having a high debt-to-equity ratio, the company generates significant cash flow to cover its debt service needs.
Investors are encouraged to consider Oracle as a long-term investment due to its potential for significant growth in the AI market. While Oracle was not identified as one of the 10 best stocks by Stock Advisor, the company’s strong position in the AI cloud market suggests promising returns in the future.
In conclusion, Oracle’s strategic entry into the AI cloud market, focus on providing customized solutions, and partnerships with industry leaders position the company well for future growth and success in the evolving technology landscape. Investors should consider Oracle as a long-term investment opportunity with the potential for substantial returns.
Article Source
https://finance.yahoo.com/news/oracle-making-ai-cloud-strides-144400766.html
