Market Analysis: Oracle is the New Nvidia

The Wall Street Journal article said that Oracle deserves credit for giving clear numbers on a vague business. Oracle's bold predictions strongly suggest that the 48-year-old company, already one of the world's largest software suppliers, could more than double its total revenue over the next three years. This is a bit like Nvidia, the artificial intelligence chip giant, which quickly went from a niche supplier of video game chips to the only company in the world with a market capitalization of more than $4 trillion. Oracle's revenue outlook is somewhat more certain because its growth is largely tied to inference - the process of sending queries to AI models and getting answers. Such activity is expected to increase as the focus of AI shifts from training better models to deploying to tens of millions of new users. Oracle faces plenty of competition, but analysts believe it has strong advantages of its own. Patrick Colville, analyst at Scotiabank, points out that Oracle has "top-notch technical expertise, access to capital, deep support from NVIDIA and independence, so it is well-positioned to catch the explosion in demand for AI training and inference".