Returns on new technology indexes peak
Source: BofA
BREAKING: Oracle and OpenAI have signed a deal worth $300B, the largest cloud computing contract in history as per the Wall Street Journal
Looks like we found the customer responsible for Oracle’s 350% increase in remaining performance obligations. Source: @amitinvesting on X
😨 As Oracle’s stock was soaring following the company’s earnings report on Tuesday, analysts were gushing about the numbers and the company’s prospects in artificial intelligence
➡️ John DiFucci from Guggenheim Securities said he was “blown away.” TD Cowen’s Derrick Wood called it a “momentous quarter.” And Brad Zelnick of Deutsche Bank said, “We’re all kind of in shock, in a very good way.” ➡️ That’s how the analysts opened their comments and questions during Oracle’s quarterly earnings call on Tuesday, as the company’s stock price was in the midst of a 28% after-hours rally. The software vendor had just reported an earnings and revenue miss, but nobody was paying attention to that. ➡️ Wall Street was singularly focused on Oracle’s forward-looking numbers and a massive growth trajectory that the company now sees thanks to its booming cloud infrastructure business and a host of new artificial intelligence deals. ➡️ “There’s no better evidence of a seismic shift happening in computing than these results that you just put up,” Zelnick said on the earnings call. ➡️ Oracle now sees cloud infrastructure revenue climbing to $144 billion over the next four years, up from $18 billion this fiscal year. Source: CNBC
🔥 Oracle reported a massive jump in bookings of future artificial intelligence business for its cloud infrastructure unit on Tuesday
This is sending shares in the US database company up 25 per cent to a record high in after-hours trading. The company’s remaining performance obligations business, it has booked that will feed through into future revenue leapt to $455bn, up from only $138bn three months ago. Safra Catz, chief executive, called it an “astonishing quarter” that had included Oracle signing “four multibillion-dollar contracts with three different customers” in the latest three months. Wall Street had been primed for a leap in bookings following the disclosure of a new $30bn-a-year contract the company signed in July, but had not expected the overall backlog to grow as fast. $ORCL Oracle Q1 FY26 (August quarter). • RPO +359% Y/Y to $455B. • Cloud revenue +28% Y/Y to $7.2B. • Revenue +12% Y/Y to $14.9B ($0.1B miss). • Non-GAAP EPS $1.47 ($0.01 miss). Source: FT, CNBC
From the FT >>>
XTX Markets, Alex Gerko’s money-printing forex high-frequency trading heavyweight, posted a job ad last week for a rolling 12–14 week AI Research Internship with a salary of $35,000 a month + a “generous sign-on bonus”! Admittedly, it’s aimed at a pretty high standard of prospective intern. Candidates are required to be pursuing an advanced degree, “ideally Ph.D., in computer science, electrical engineering, mathematics, or a related quantitative field” with at least a year until their graduation. They also need “solid” programming skills and “a proven publication record in leading machine learning and AI venues”. But still, it looks like the race for super-star interns keeps getting fiercer Source: FT Link to article >>> https://lnkd.in/gWeCPJK7
In the AI race between Alphabet $GOOGL and Microsoft $MSFT, Alphabet is once again clearly ahead
Since the launch of ChatGPT, Alphabet stock has risen nearly 128%, while Microsoft's share price has only increased 98%. Source: HolgerZ, Bloomberg
This is where AI gets its facts…
Source: Stocktwits, Visual Capitalist
Hyperscaler growth is set to slow meaningfully over the next year
Will AI CapEx follow? Chart: Goldman Sachs thru Markets & Mayhem
