$Oracle(ORCL)$ I think Oracle might still be one of the AI infrastructure plays the market hasn't fully grasped yet.
Looking ahead, their profits are projected to triple over the next three years. Meanwhile, the stock is trading below 10x expected 2029 earnings.
The real story is the OCI growth. Oracle Cloud Infrastructure is expanding fast, up 93%, and their remaining performance obligations backlog has grown to around $640 billion.
The main thing to watch now is execution. If demand from $Meta Platforms, Inc.(META)$ , OpenAI, and other AI clients keeps converting that backlog into actual revenue, Oracle could position itself as the fourth major AI cloud player before the market fully prices that in.
The AI race isn't just creating winners in chips. The companies building out the infrastructure layer could end up being some of the biggest beneficiaries.
First reactions aren't always the final ones. It's worth keeping an eye on how this develops.
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