Could Oracle’s (ORCL) Supercomputer Ambitions Redefine Its Competitive Edge in AI and Fintech?

• Oracle, alongside NVIDIA and Argonne National Laboratory, announced a collaboration with the U.S. Department of Energy to deliver the nation’s largest AI supercomputer, while Oracle also unveiled its upcoming Digital Assets Data Nexus platform for digital asset management in banking and finance.
• These initiatives highlight Oracle’s rapid advancement in AI infrastructure and blockchain, underscoring its expanding influence across both scientific research and financial technology ecosystems.
• We’ll explore how Oracle’s leadership in the U.S. Department of Energy AI supercomputer project could impact its investment narrative.

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Oracle Investment Narrative Recap

To be a shareholder in Oracle today, you need conviction that the surge in AI infrastructure demand, driving huge long-term contracts and cloud revenue acceleration, will remain strong enough to sustain Oracle’s rapid growth ambitions and justify ongoing high capital spending. The recent U.S. Department of Energy AI supercomputer partnership highlights Oracle’s relevance in major scientific and enterprise AI projects, but as the company relies increasingly on a handful of massive AI clients, any slowdown or shift in spending could materially affect the current growth narrative; for now, the announcement mainly strengthens the AI demand catalyst and does not sharply alter the most important risk, which remains customer concentration and CapEx exposure.

Among recent developments, Oracle’s launch of the Digital Assets Data Nexus platform stands out as it broadens Oracle’s appeal to financial institutions navigating digital transformation. While this product expansion could help diversify Oracle’s sources of cloud revenue, the key catalysts continue to revolve around converting its AI infrastructure commitments and backlog into profitable growth.

Yet, in stark contrast to Oracle’s optimism, investors should be mindful of the risks associated with…

Read the full narrative on Oracle (it’s free!)

Oracle’s outlook anticipates revenues reaching $99.5 billion and earnings rising to $25.3 billion by 2028. This scenario implies a 20.1% annual revenue growth rate and a $12.9 billion increase in earnings from the current $12.4 billion.

Uncover how Oracle’s forecasts yield a $344.07 fair value, a 34% upside to its current price.

Exploring Other Perspectives

Across 25 fair value estimates from the Simply Wall St Community, opinions range from US$170.68 to US$344.07 per share. With investor sentiment split, the discussion sharpens around Oracle’s reliance on concentrated AI infrastructure contracts and whether such exposure could impact future financial resilience.

Explore 25 other fair value estimates on Oracle – why the stock might be worth as much as 34% more than the current price!

Build Your Own Oracle Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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