Oracle reported a 11% revenue growth to $15.9 billion for the fourth fiscal quarter, exceeding analysts' expectations of $15.6 billion. The growth is driven by the rapidly expanding cloud sector. According to the company, the Cloud Infrastructure division is expected to grow by more than 70% in the coming fiscal year, while the order backlog is expected to more than double.

The stock of the US technology group jumped nearly 8% in after-hours trading. Founder and CTO Larry Ellison commented as usual offensively: "Oracle will become the world's leading operator and builder of cloud infrastructure data centers. More than anyone else.

The cloud boom is currently providing Oracle with a tailwind. Demand for infrastructure for AI applications increased the corresponding revenues by 52% in the most recent quarter. Nevertheless, Oracle lags behind the major competitors in terms of Capex. Investments of 25 billion US dollars are planned for the coming year – significantly less than the over 300 billion dollars that Amazon, Alphabet, Meta, and Microsoft collectively allocate for data centers and infrastructure.

Oracle's role in OpenAI and SoftBank's $500 billion Stargate project is garnering additional attention. The company is already providing computing power for OpenAI after Microsoft's capacities were exhausted. Contracts have also been signed with Elon Musk's xAI and Meta. According to information from the Financial Times, Oracle is set to invest around $40 billion in Nvidia chips to supply computing power to the first US Stargate center in Texas.

CEO Safra Catz emphasized that while Stargate is "still under construction," the majority of growth is currently coming from contracts with other customers. Ellison added that Oracle had closed a "gigantic contract" with the Chinese online retailer Temu.

At the same time, Oracle is considered a favorite for a role in the potential US spin-off of TikTok. If ByteDance were to spin off the video app, Oracle could not only continue to take over hosting but also acquire a minority stake—along with existing US investors. The US government has set a deadline of June 19 for the Chinese parent company.

Despite positive business development and expansion course, investors express concerns about the high debt and comparatively high price-earnings ratio. Compared to cloud competitors like Amazon, Microsoft, or Alphabet, Oracle is trading at valuation levels that depend on sustainable growth.