"AI faith" is rising again! Computing power demand exploding Oracle Corporation (ORCL.US) boldly predicts that cloud infrastructure revenue will increase by over 70% in the new fiscal year.

The technology giant Oracle Corporation (ORCL.US), known globally for its cloud computing services and database software, announced its performance report after the closing of the US stock market on Wednesday. The company anticipates that in the 2026 fiscal year, which began this month, strong demand for cloud AI computing resources and explosive growth in physical AI computing infrastructure will drive its cloud infrastructure sales to increase by over 70%. This outlook significantly boosted investors' optimism towards Oracle Corporation's cloud computing business, leading investors to believe even more firmly that under the push of AI, Oracle Corporation's market share in the cloud computing field will eventually rival that of Amazon.com, Inc.'s AWS and Microsoft Corporation's Azure. The latest performance and outlook guidance highlight how Oracle Corporation, traditionally known for its database software, is accelerating its move towards becoming a superpower in cloud computing services, focusing on attracting large customers with high demand for AI computing such as AI training/inference systems. Earlier this year, Oracle Corporation announced a joint venture with AI leader OpenAI called "Stargate," a large data center enterprise aimed at providing massive AI computing resources to OpenAI. Moreover, AI newcomers such as xAI founded by Tesla, Inc. CEO Elon Musk, and technology industry leaders like Meta Platforms (META.US), the parent company of Facebook, have become customers of their cloud computing services. Oracle Corporation CEO Safra Catz stated that Oracle Corporation is continuing to advance towards its goal of becoming "one of the world's largest cloud infrastructure companies." "We performed exceptionally well over the past year, but we believe that the 2026 fiscal year will be even better, with significant revenue growth related to cloud computing business," she said in the performance statement. Larry Ellison, the Chairman of Oracle Corporation, said during an earnings call with analysts after the release of the performance report: "We recently received an order that says take all your capacity, wherever it is... This could be in Europe, or it could be in Asia, we are going to take all your capacity. What I am saying is, we have never had such a radical capacity order before." After the performance report was released, Oracle Corporation's stock price surged over 8% in after-hours trading. Financial data shows that as of the fourth quarter of the 2025 fiscal year ending on May 31, Oracle Corporation's Remaining Performance Obligations (RPO) a key indicator measuring demand and booking volume for tech companies reached $138 billion, up from $130 billion in the previous quarter, representing a 41% year-on-year increase. The significant growth in RPO largely indicates that Oracle Corporation has successfully secured large-scale long-term customer subscription commitments in the cloud computing business. Following the announcement of the performance report, Oracle Corporation's stock price surged over 8% to $191 in after-hours trading on Wednesday, up from a close of $176.38 in New York. In the past month, with AI leaders such as NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and Palantir announcing strong performances, global investors' concerns over tariffs and other geopolitical issues affecting the AI computing industry and AI software field have diminished. Oracle Corporation's stock price has risen by 17%, significantly outperforming the S&P 500 index's 5% increase. NVIDIA Corporation (NVDA.US), the "strongest player in the AI field," has revitalized the "AI faith" of global tech stock investors in the second quarter with its strong performance. The power of investors' faith in AI may continue to create significant waves in global stock markets, driving the sustained outperformance of tech companies related to AI. Since 2024, the impact of "AI faith" on global stock markets, including US stocks, has surpassed the impact of expectations of Federal Reserve interest rate cuts. Oracle Corporation's recent performance is expected to continue to fuel the strong bullish sentiment that has been driving the recent surge in US stocks, and this performance is very likely to strongly support the resurgence of bullish sentiment towards AI in the stock market. Brent Thill, an analyst at the Wall Street firm Jefferies Financial Group Inc., stated in a media interview that the most eye-catching part of the performance report is the long-term performance outlook provided by Catz, which implies an acceleration in revenue for Oracle Corporation's cloud computing business. This significant growth may come from xAI and other tech giants, as well as the joint venture with OpenAI to establish the "Stargate" enterprise, bringing massive cloud computing and AI infrastructure orders. In the fiscal year ending on May 31, Oracle Corporation's capital expenditures nearly tripled, skyrocketing to $21.2 billion, with a significant amount of cash urgently needed to invest in projects such as the first "Stargate" site in Abilene, Texas, a super-sized data center. In terms of highlights from the fourth fiscal quarter, Oracle Corporation's overall revenue increased by 11% year-on-year to $15.9 billion, surpassing the average expectation of $15.6 billion from Wall Street analysts.One billion US dollars; after deducting certain items, earnings per share was $1.70, higher than the market estimate of $1.64 and the $1.63 from the same period last year; Oracle Corporation's operating profit for the fourth quarter under Non-GAAP standards is approximately $7.04 billion, higher than analysts' expected $6.85 billion.Oracle Corporation's overall cloud computing business (including IaaS and SaaS) revenue for the fourth quarter increased by 27% year-on-year to reach $6.7 billion, meeting analyst expectations; with the cloud infrastructure business (i.e. IaaS) revenue growing by 52% year-on-year to $3 billion, slightly lower than the Wall Street average expectations. "The reason demand continues to outstrip supply is that we urgently need to build these data centers so quickly, building these high-performance AI server clusters," Ellison said. CEO Ktz stated during the analyst performance conference call that cloud infrastructure revenue for the 2026 fiscal year is expected to grow by over 70%, compared to the 52% growth rate this quarter. She also predicted the company's revenue for the 2026 fiscal year to exceed $67 billion, higher than analysts' average expectations of approximately $65.18 billion. Analyst Anurag Rana from Bloomberg Intelligence pointed out that the slight shortfall in quarterly cloud computing revenue expectations is more likely due to supply bottlenecks rather than insufficient demand. It is understood that TikTok, owned by ByteDance, is an important customer of Oracle Corporation's cloud computing business. However, the business prospects in the United States remain uncertain as a law passed in the United States requires it to find American buyers; earlier reports stated that US President Donald Trump has extended the original deadline from April to mid-June and may consider another extension. Tech giant Oracle Corporation - one of the big winners in the AI boom Oracle Corporation can be said to be one of the big winners in the global AI boom. Riding the wave of AI, Oracle Corporation's stock price rose by 60% in 2024, with a nearly 17% year-to-date increase in the past month, making a push towards new highs. Under the trend of global tech companies ramping up the deployment of generative AI technologies such as ChatGPT, Oracle Corporation is one of the biggest winners in this trend, with its global customer base for cloud computing infrastructure (IaaS) and cloud computing application software continuing to grow rapidly. Looking at the revenue growth in recent years, Oracle Corporation has resumed its growth curve in revenue after many years, indicating that this software manufacturer's cloud computing-related services are benefiting greatly from the surge in demand for cloud computing services brought about by the global deployment of artificial intelligence (AI). Wall Street analysts have continuously raised performance and stock price outlooks for this 48-year-old tech company in recent times, mainly based on the enormous growth potential of the company's cloud computing services as customers increasingly turn to deploying AI application software products. The high growth prospects, especially in the next fiscal year for cloud infrastructure business, directly reflect the thirst for AI training/inference for AI computing resources, and show that Oracle Corporation's Oracle Cloud Infrastructure business (OCI) is aggressively seizing the core AI infrastructure that was almost monopolized by cloud computing leaders such as AWS, Azure, and Alphabet Inc. Class C's GCP cloud computing platform. In terms of AI infrastructure construction, the massive $500 billion "Stargate" and other super AI infrastructure plans require the participation of cloud giants such as Microsoft Corporation, Oracle Corporation, and Amazon.com, Inc. AWS. From a global perspective, the upcoming global AI infrastructure wave, led by governments around the world, will require the participation of cloud giants such as Alibaba Group Holding Limited Sponsored ADR, Tencent, SAP, OVHcloud in AI infrastructure construction. A significant proportion of global funding invested in AI infrastructure will be focused on the core AI infrastructure construction area that integrates high-performance AI computing hardware such as "AI GPUs and AI ASICs" with IaaS+PaaS+SaaS. The "Stargate" project, a massive AI infrastructure project, aims to create ultra-large-scale data centers that can support the demand for massive AI computing power. Building data centers of this scale requires robust cloud computing infrastructure and storage resources to accommodate high-performance AI computing hardware. As a leading global cloud computing service provider, Oracle Corporation can provide the immense core AI infrastructure and cloud computing software services needed, and has extensive experience in data center construction and operation, thereby driving the strong growth trend in demand for its cloud computing services.