Oracle: The Gold Miner in the Age of AI

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In the wave of artificial intelligence, Oracle is quietly becoming an indispensable tool supplier for gold miners. The company's cloud services, particularly its applications in AI, have become crucial support for firms like OpenAI, AWS, and Google Cloud.

Recently, Oracle released its Q1 fiscal report for 2025, showing a 21% year-over-year increase in cloud business revenue, reaching $5.6 billion. This is a strong indication of the company's robust growth momentum in artificial intelligence and cloud infrastructure.

Furthermore, Oracle's performance exceeded market expectations, with non-GAAP earnings per share reaching $1.39, surpassing the forecast by $0.06, and total revenue hitting $13.3 billion, exceeding expectations by $60 million. The strong performance of the company's cloud business, especially the segment including AI database software, continues to be the main driver of growth.

Geographically, Oracle generated $8.3 billion in revenue in the Americas, a year-over-year increase of 6.8%. In the EMEA region, Oracle reported $3.2 billion in revenue, which is crucial for its growth as European enterprises and governments increasingly adopt cloud infrastructure and AI solutions.

In terms of valuation, Oracle's earnings per share are expected to grow at a compound annual growth rate of 13.4% in fiscal year 2025, increasing to $14.41 in fiscal year 2026, and continuing to grow at a low double-digit compound annual growth rate in the coming years. Currently, the company's forward price-to-earnings ratio stands at 24.74, only slightly above the industry median of 23.17. Given Oracle's growth potential, I believe its P/E ratio should be about 30% higher than the industry median, approaching 30.12. This would provide a 21.75% upside for the stock price, not including dividends.

Of course, risks are present; the development of AI may face obstacles if expectations are not met. However, data is the essential fuel for AI, and Oracle's database technology is a solid foundation for its long-term success.

Overall, Oracle's outstanding performance in Q1 of fiscal year 2025 and its strategic partnerships with tech giants solidify its leadership position in the AI field. Although its forward P/E ratio is slightly above the industry average, given its significant growth potential, Oracle's stock deserves market recognition for a higher valuation. Therefore, I firmly believe Oracle's stock is a worthy investment option.