Oracle's AI-driven cloud business soars, reaching record high surge

13 Mar, 2024

Oracle's AI-driven cloud business soars, reaching record high surge

Description: Oracle's stock soared over 13% to a new high, reflecting progress in its cloud-computing strategy fueled by collaboration with Nvidia. The upcoming joint announcements with Nvidia at the GTC developer conference hint at further advancements. Oracle's investment in Nvidia chips aims to position itself as a cost-effective cloud provider, challenging major players like Amazon and Microsoft. This strategy, coupled with partnerships granting access to Nvidia supercomputers, drove a significant 25% surge in cloud revenue for the third quarter. Analysts note a positive shift in Oracle's cloud momentum after previous quarters' disappointments. The company's market value is poised to exceed $40 billion, with analysts revising price targets upwards. Despite concerns over data center constraints and economic uncertainty, CEO Safra Catz reassured investors with news of substantial deals in the pipeline. While Oracle's shares previously lagged behind competitors like Microsoft, the recent surge indicates renewed investor confidence in its cloud business strategy. With Oracle trading at a lower multiple compared to the software and IT services sector, the company appears poised for further growth.