Oracle's Exponential Growth Guidance in AI Infrastructure

5 days ago

Multiple speakers

"Oracle shared its AI infrastructure delivery example by outlining a road map where Oracle Cloud revenue should grow from $10 billion in fiscal 2025 to $166 billion in fiscal 2030. They broke down costs into 35% for land, data center, and power, and 65% for compute, network, and storage. The numbers are described as insane, and if Oracle can pull these targets off, the stock would be extremely cheap today. However, failure to meet these numbers could result in a significant variance against consensus."

Speakers examine Oracle's ambitious guidance for its cloud revenue growth fueled by AI infrastructure, emphasizing the potential upside if targets are met while cautioning about the risks if there are execution missteps. The detailed cost breakdown and multi-year roadmap provide investor clarity on long-term valuation.

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