The stock market, you see, is a bit like a dog chasing its tail. For a few months now, the artificial intelligence corner of it has been looking a little dizzy. The Global X Artificial Intelligence & Technology ETF, for instance, was down about four percent. Not a catastrophe, mind you, but enough to make a few folks nervous. So it goes.
Nvidia, Palantir, Broadcom – the usual suspects – all felt a bit of a pinch. Oracle, too. That company, Oracle, lost half its value from a high reached last September. A perfectly good company, as far as these things go. But then, what isn’t losing something these days?
There was talk, naturally. Talk of debt, of circular financing – which sounds worse than it is, really – and valuations that were, shall we say, optimistic. Investors get skittish. They’re people, after all. They worry about things. And so it goes.
But then Oracle reported its latest numbers. And for a moment, just a moment, things looked… less bleak. It’s funny, isn’t it? How a few well-placed figures can change the narrative. A little bit of good news in a world determined to find the bad.
Oracle and the Sustainability of Hype
Oracle’s little slide, you see, had two main causes. First, they’d signed a deal with OpenAI, a deal worth about $300 billion in potential revenue. A huge number. The worry was that OpenAI might not be able to pay. Which, let’s be honest, is a legitimate concern when you’re talking about sums that could fund a small country.
Second, Oracle had been spending money. A lot of money. Building data centers, preparing for this AI future. It’s a gamble, of course. Building something on the assumption that others will come. A common human story. They took on debt to do it, which always makes investors twitchy. If OpenAI defaulted, it would have been a problem. A sizable problem.
But the latest quarterly results, for the period ending February 28th, seemed to calm the waters. The stock went up. Not to the moon, mind you. Just a respectable jump. Revenue was up 22 percent, earnings up 21 percent. These things happen.
And the backlog—the total value of contracts yet to be fulfilled—shot up 325 percent to $553 billion. Oracle pointed out that most of this increase came from AI contracts where they didn’t expect to need more funding. A reassuring thought. For them, at least.
Their cloud infrastructure revenue jumped 84 percent to $4.9 billion. They’re turning promises into actual money. A rare feat. They also increased their revenue guidance for next year to $90 billion. A little optimism. It’s a funny thing, optimism. It rarely lasts.
A Brief Reprieve, Perhaps
Oracle is betting big on AI. They plan to spend $50 billion on capital expenditures this year, up from $21 billion last year. A considerable sum. If that bet pays off, it could be good news for Oracle. And maybe, just maybe, for the AI sector as a whole.
So, it might be a good time to consider buying some of these AI stocks, including Oracle, that have been under pressure. Not because they’re guaranteed to succeed, of course. Nothing is. But because sometimes, a little bit of hope is all we have. And so it goes.
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2026-03-12 21:12