Nvidia’s (NVDA) stock is making a strong comeback, rising by 5.8% after a recent dip.
The company has seen triple-digit gains in 2024 but faced a 14% decline over the past three months due to concerns about a potential slowdown in AI demand. However, a solid set of earnings from Oracle (ORCL), and comments by Nvidia’s CEO Jensen Huang, have reignited optimism.
At the Goldman Sachs Communacopia and Technology Conference, Huang emphasized the long-term potential of AI, highlighting Nvidia’s critical role in the development of generative AI. He stressed that AI will revolutionize the way businesses operate, expanding far beyond data centers and into real-world applications. Nvidia’s GPUs remain vital for companies like Microsoft (MSFT), Meta (META), and OpenAI, keeping the demand for AI infrastructure high despite recent volatility.
Oracle's AI-Driven Cloud Growth
Oracle’s stock surged 12% following its first-quarter earnings report, marking the fifth consecutive quarter in which the company’s earnings led to a gap in share price. Oracle’s revenue increased by 6.9% year-over-year, driven by the rapid growth of its cloud services. The company’s cloud-related remaining performance obligation (RPO) grew 80%, and total RPO hit a record $99 billion.
Oracle's recent partnership with Amazon Web Services (AWS) has further solidified its position in the cloud space, making its Autonomous Database available on AWS. This partnership is Oracle’s latest step in expanding its multi-cloud strategy, joining similar agreements with Microsoft Azure and Google Cloud (GOOG). Oracle now operates 162 data centers, with plans to expand significantly to meet surging demand for AI-driven cloud infrastructure.
Nvidia and Oracle: Powering AI’s Future
Nvidia and Oracle are at the forefront of the AI revolution, with both companies leveraging their strengths to capitalize on the rising demand for AI solutions. Nvidia’s GPUs remain indispensable for AI development, powering the data centers of Big Tech companies, while Oracle is building out its cloud infrastructure, fueled by the growth of AI-driven applications.
As Oracle scales up its data center capacity, Nvidia’s chips will continue to play a central role, particularly as Oracle’s CTO Larry Ellison predicts a $100 billion AI-driven boom. Both companies are poised for continued growth, with AI serving as a key driver of future success.
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