Oracle and Nvidia to Make Joint Announcement, Oracle Beats Quarterly Profit Estimates
Oracle’s partnership with Nvidia and strong quarterly performance has investors buzzing
Oracle, the 46-year-old database giant, has been making waves in the tech industry with its latest announcement of a joint partnership with chip-giant Nvidia. The news comes on the heels of Oracle beating estimates for quarterly profit, thanks to the booming demand for generative AI.
The announcement sent Oracle’s shares soaring nearly 14% in extended trading, adding over $40 billion to its stock market value. The company has been on a mission to reinvent itself as a cloud-computing provider, offering services at a competitive price point compared to rivals like Amazon.com.
“We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply,” said Oracle CEO Safra Catz. The company has been rapidly expanding its cloud datacenters to meet the growing demand.
Oracle executives highlighted Nvidia multiple times during their call with analysts, hinting at a forthcoming joint announcement. The company reported a profit of $1.41 per share for the third quarter, surpassing expectations and showcasing strong growth in booked revenue.
“While results for the quarter were in line with expectations, investors are excited about the new business Oracle won during the quarter,” said research analyst Gil Luria. The company’s Remaining Performance Obligations, a key measure of booked revenue, saw a 29% increase compared to the previous year.
Despite revenue for the quarter falling slightly below analysts’ estimates, Oracle remains optimistic about future growth. The company forecasted revenue growth in the range of 4%-6% for the current quarter, slightly below analysts’ expectations.
With the joint announcement with Nvidia on the horizon, Oracle’s strategic partnerships and focus on cloud computing are positioning the company for continued success in the tech industry.
