On the surface, Oracle (NYSE: ORCL) is the type of company you would expect to benefit tremendously from the generative artificial intelligence (AI) boom. It provides the computing power and data storage vital for running and training these complex algorithms. But while its stock captured some gains early in the AI era, it has more recently lagged behind other AI infrastructure stocks.
Oracle's shares are up by a relatively modest 69% over the last five years, well behind chipmakers such as Nvidia and Micron Technology, which have soared by 885% and 1,212%, respectively, in the same time frame. Let's discuss the pros and cons of Oracle, and attempt to predict what a $1,000 position could be worth by the end of the decade.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Like the leadership teams at many tech giants, Oracle's management recognized the long-term potential of the generative AI boom fairly early in the trend. They quickly moved to position the company on the pick-and-shovel side of the opportunity, providing cloud services and data center capacity to companies that were working to create and market consumer-facing large language models (LLMs). That push into the cloud infrastructure segment was underpinned by a substantial reorganization of Oracle's corporate structure.
This year, the company has already laid off 21,000 employees. That number is expected to rise with a $700 million addition to its restructuring plan (which is now worth $2.8 billion); much of the new spending is earmarked for severance payments and other exit expenses.
#NVIDIA #flashing #early
Oracle's shares are up by a relatively modest 69% over the last five years, well behind chipmakers such as Nvidia and Micron Technology, which have soared by 885% and 1,212%, respectively, in the same time frame. Let's discuss the pros and cons of Oracle, and attempt to predict what a $1,000 position could be worth by the end of the decade.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Like the leadership teams at many tech giants, Oracle's management recognized the long-term potential of the generative AI boom fairly early in the trend. They quickly moved to position the company on the pick-and-shovel side of the opportunity, providing cloud services and data center capacity to companies that were working to create and market consumer-facing large language models (LLMs). That push into the cloud infrastructure segment was underpinned by a substantial reorganization of Oracle's corporate structure.
This year, the company has already laid off 21,000 employees. That number is expected to rise with a $700 million addition to its restructuring plan (which is now worth $2.8 billion); much of the new spending is earmarked for severance payments and other exit expenses.
#NVIDIA #flashing #early
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