- Oracle’s stock surged over 13% to reach a new high and teased a potential collaboration with Nvidia.
- Oracle hinted at forthcoming collaborative announcements with Nvidia, possibly during the chipmaker’s GPU Technology Conference (GTC) from March 18 to 21.
- Due to concerns over data centre capacity and economic uncertainty, Oracle CEO Safra Catz reassured investors by citing numerous signed large deals.
On March 12, Oracle shares jumped more than 13% to a new high and heralded a potential partnership with Nvidia.
Oracle’s investment sparks surge
Oracle hinted at potential collaborative announcements with Nvidia for next week, maybe during the chipmaker’s GPU Technology Conference (GTC) developer conference, which takes place from March 18 to 21.
Oracle, positioning itself as a low-cost cloud provider, has invested billions in Nvidia chips to challenge industry giants like Amazon and Microsoft.
These efforts, along with a partnership granting cloud customers access to Nvidia supercomputers, contributed to Oracle’s 25% surge in third-quarter cloud revenue, with its remaining performance obligations, or sales backlog, rising by 29%.
Also read: Nvidia’s NeMo becomes latest AI model to be sued by artists
With a share price of $129.37, the firm was expected to increase its market worth by almost $40 billion.
According to LSEG statistics, Oracle trades at 19 times its 12-month forward earnings expectations, while the software and IT services industry trades at 31.2 times.
Also read: Chipmaker Groq and a former AMP VP accuse Nvidia of unfair practises
CEO Safra Catz eases concerns
Due to concerns that the company’s development might be hindered by data center capacity limitations and an uncertain economic outlook, Oracle CEO Safra Catz calmed some of those worries on Monday by stating that the company “signed several large deals this quarter, and we have many more in the pipeline”.
