$Oracle(ORCL)$ I think the market is focusing on the wrong metric.
A 363% increase in RPO is extraordinary. Customers don't commit to multi-year contracts unless they genuinely need the capacity. To me, this suggests AI demand remains stronger than supply.
The concern is whether Oracle is spending too aggressively on data centers and GPUs. That's a valid risk, but if management executes well, today's spending could become tomorrow's moat.
What I'm watching:
🔹 RPO growth
🔹 Cloud revenue growth
🔹 Operating margin trend
🔹 AI infrastructure utilization
The biggest winners of the AI boom won't necessarily be the companies building the models. They may be the companies providing the infrastructure, power and cloud capacity behind them.
My takeaway:
Short-term, AI spending may pressure margins.
Long-term, Oracle is positioning itself as one of the key beneficiaries of the AI infrastructure race.
Would you rather own Oracle, Microsoft or Nvidia for the next 5 years?
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