In a notable achievement, Oracle (NYSE:ORCL) surpassed expectations for its quarterly profit, buoyed by the escalating demand for its cloud-computing services, particularly fueled by the surge in generative AI technologies.
On Monday, Oracle’s stock soared by 9.8% to $125.31 during extended trading sessions, reflecting the positive market response to its robust performance.
The 46-year-old tech stalwart has been actively reshaping its identity as a prominent player in the cloud-computing arena, strategically positioning itself to offer services at competitive rates compared to industry rivals like Amazon.com.
In its pursuit to bolster subscription sales, Oracle has forged strategic alliances, notably with arch-rival Microsoft and leading AI chip manufacturer Nvidia. Leveraging Nvidia’s cutting-edge supercomputers, which are renowned for their prowess in AI computation albeit at a premium price, Oracle aims to attract clientele to its cloud platform.
Safra Catz, Oracle’s CEO, highlighted the overwhelming demand for their Gen2 AI infrastructure, which has outstripped supply. Catz emphasized the company’s rapid expansion of cloud data centers to meet the burgeoning demand, expressing confidence in continued contract acquisitions for cloud infrastructure.
Excluding exceptional items, Oracle reported a profit of $1.41 per share for the third quarter, marking a notable 16% increase compared to the same period last year. This figure exceeded analysts’ average projection of $1.38 per share, as per data from LSEG.
However, Oracle’s revenue for the three months ending February 29 stood at $13.28 billion, slightly below analysts’ average forecast of $13.30 billion. Despite this, the company’s robust profit performance underscores its strong footing in the competitive cloud-computing landscape, propelled by the growing demand for AI-powered solutions.
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Author Faith Yakubu 
