Oracle Cloud Revenue Soars on Booming AI Demand; Stock Seen as Undervalued Despite Growth
-
Oracle's cloud revenue grew 25% year-over-year last quarter due to rising demand for AI applications. Overall revenue was up 7%.
-
Oracle received over 40 new AI-related deals worth over $1 billion each last quarter, showing strong growth.
-
Oracle aims to push further into generative AI across sales, marketing, HR, finance, supply chain and more with its cloud infrastructure.
-
The cloud AI market is forecasted to grow from $43 billion in 2022 to $887 billion in 2032, presenting a big opportunity.
-
At current valuations, Oracle stock looks undervalued compared to tech stocks and analysts expect earnings growth to accelerate through 2026.