AI is not just about Nvidia. One Tiger caught Oracle’s move and turned call options into a 4,069% gain.
Congrats to @无趣苏 for buying $Oracle(ORCL)$ call and turning them into a 4,069% gain.
Congrats to @翘飞横盘股 for buying $Oracle(ORCL)$ call and turning them into a 1,914% gain.
So what happened with Oracle?
For years, many investors saw Oracle as an old-school database company. It was stable, profitable, and important for enterprise software,Now, the story may be changing.
As AI grows, companies need more than chips and models. They also need cloud infrastructure, data centers, computing power, databases, and enterprise platforms that can support large-scale AI workloads.
Oracle Cloud Infrastructure, or OCI, has become one of the key reasons investors are paying attention again. In its latest quarter, Oracle’s cloud infrastructure revenue grew 84% year over year. Its AI infrastructure revenue grew 243%, while multi-cloud database revenue jumped more than 500%. Oracle’s RPO reached $553 billion, up 325% year over year.
In simple terms, Oracle has a huge backlog of future business. Investors are not only looking at what Oracle is earning today. They are looking at whether those future contracts can turn into revenue, profit, and cash flow.
That is why the stock has been re-rated.
Oracle recently rallied sharply, rising from around $160 to around $240 in roughly a month. Wedbush also raised its price target to $275, citing Oracle’s data center expansion, AI infrastructure demand, and growing partnerships with major cloud players like Microsoft, Google, and Amazon.
For a long time, investors treated Oracle as a mature software company. The business was important, but the growth story looked limited. Now, investors are starting to view Oracle as an AI infrastructure play.
Still, this is not a risk-free story.
AI infrastructure is extremely capital-intensive. Oracle is spending heavily to build capacity. Its free cash flow over the past 12 months was negative $24.7 billion, and capital spending for the first three fiscal quarters reached about $39.2 billion. Full-year capex could reach around $50 billion.That means Oracle is making a big bet: spend aggressively now, and hope AI cloud demand keeps growing in the future.
If those investments turn into high-margin cloud revenue, Oracle could become one of the major winners in AI infrastructure. But if AI demand slows, if backlog conversion takes longer than expected, or if margins disappoint, the same capex could become a major pressure point.
That is why Oracle is now a very debated stock.
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Bulls see strong OCI growth, booming AI infrastructure demand, a massive $553 billion RPO backlog, and partnerships with Microsoft, Google, and Amazon.
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Bears see a stock that has already moved fast, a valuation that is no longer cheap, negative free cash flow, heavy capex, and possible financing pressure.
Do you think Oracle still has more room to run, or is the AI infrastructure rally getting too hot? Share your thoughts below, and share your winning trades!
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