From NASDAQ.: 2024-05-19 04:00:00

Artificial intelligence (AI) is driving growth in the technology sector, with generative AI finding multiple applications. Data centers present a significant growth opportunity, estimated at $439 billion by 2028. Oracle is emerging as a key player in the AI data center space, with a 29% year-over-year increase in remaining performance obligations to $80 billion.

In addition to Nvidia and AMD, businesses like Vertiv are capitalizing on the rising demand for data center services. Amazon announced an $11 billion investment in data center infrastructure. Oracle reported a 7% year-over-year revenue growth in Q3 fiscal 2024, with a high backlog driven by data centers. A potential $10 billion deal with xAI could further boost Oracle’s presence in the cloud solutions market.

While Oracle’s P/E ratio may not be cheap, its lower valuation compared to peers makes it an attractive investment opportunity. The company’s strategic focus on AI cloud-storage solutions positions it well for future growth. Despite not being on the current list of top stocks, Oracle’s potential in the AI data center sector suggests promising long-term gains for investors looking to diversify their portfolios.



Read more at NASDAQ.: A Once-in-a-Generation Investment Opportunity: 1 Data Center Stock That Could Go Parabolic (Hint: not Nvidia)