- Oracle’s stock rose by 10% last week, and the advancement of AI-integrated cloud services will further drive its revenue growth.
- Since the beginning of this year, Oracle’s stock has risen far more than Microsoft and Amazon. If this growth trend continues, Oracle’s market value is expected to increase by $39 billion.
OUR TAKE
With the support of Azure, Google Cloud, and AWS, Oracle’s AI-integrated cloud services will be an attractive option in cloud business development. This will not only benefit the revenue growth of cloud service companies but also promote multi-cloud partnerships between different companies, achieving a win-win outcome.
-Tori Cai, BTW reporter
What happened
Oracle’s shares surged over 10% on Tuesday. Its first-quarter revenue rose 21% to $5.6 billion, while total revenue reached $13.31 billion, surpassing estimates. Meanwhile, the stock is trading at a forward price-to-earnings ratio of 21.30, while Microsoft and Amazon have forward price-to-earnings ratios of 29.81 and 31.50, respectively. Oracle’s shares have risen more than 32% this year, outperforming Microsoft’s 8% and Amazon’s 15%. The company has seen rapid growth due to AI investments and partnerships with NVIDIA for AI chips. Recent collaborations with AWS and Google Cloud further support its growth.
Also read: Oracle boosts AI cloud with Nvidia GPUs
Also read: Oracle settles $115M privacy lawsuit over data collection
Why it’s important
AI significantly enhances the efficiency and scalability of cloud operations by automating complex processes, optimising resource usage, and enabling faster data analysis. This allows Oracle to offer more advanced, cost-effective solutions to businesses relying on cloud infrastructure.
Collaborations with AWS and Google Cloud allow for easier cross-vendor data connections, enhancing the customer experience. These efforts are expected to increase cloud revenue and accelerate growth, highlighting AI’s transformative potential in cloud services as market demand evolves.
