While Nvidia Corp and Meta Platforms Inc have dominated the headlines with their AI advancements, Oracle Corp is making a quiet but impressive climb.
The cloud and database giant has been one of the best performers in large-cap tech this year, trailing Nvidia, yet ahead of Meta. Oracle's recent earnings report sent its stock surging 11%, adding to the 49% gain for 2023. While Nvidia's AI dominance remains a major talking point, Oracle's stealthy cloud growth is starting to win over investors.
Oracle's Rising Share In The Cloud, AI Space
Larry Ellison, Oracle's founder and chairman, has seen his wealth rise to $173 billion as his company focuses on cloud infrastructure and AI-driven database solutions. Oracle's growth in the cloud space, while lagging behind Amazon.com Inc, Microsoft Corp, and Google's parent Alphabet Inc in market share, has been robust.
In the latest quarter, its cloud infrastructure unit posted a 45% revenue increase, reinforcing the company's solid footing in the growing AI space.
Partnerships Paying Off
Despite being overshadowed by Nvidia's AI chips and Meta's metaverse initiatives, Oracle's partnerships with the top cloud players are propelling the company forward. Collaborations with AWS, Microsoft, and Google have turbocharged Oracle's database business, allowing clients to use Oracle's cloud services on top of their existing infrastructure. These partnerships are paying off, positioning Oracle for sustained growth.
Interestingly, while Nvidia's AI hardware and software stack continues to dominate, Oracle's innovations, like its autonomous database and vision for a password-less future, are capturing attention.
Ellison's insistence on AI-driven automation is reshaping how businesses handle data, and investors are starting to take notice.
In the stock market, Oracle's strength is becoming evident. Over the past year, Oracle stock is up 44.3%, with a 55.08% YTD surge. Nvidia, while still the star with 147.33% YTD gains, is no longer the only player riding the AI wave, as Oracle continues to quietly build momentum.
