Benzinga - by Rounak Jain, Benzinga Staff Writer.
Wedbush's Dan Ives is increasingly excited and optimistic about the AI revolution. He thinks the latest piece of the puzzle is hidden in software giant Oracle Corp.'s (NYSE:ORCL) fiscal third-quarter earnings.
What Happened: Ives underscored the fact that Oracle is bullish about its AI efforts, which the company described as being in a "hypergrowth" phase during a post-earnings call with analysts on Monday.
"Investors are trying to put a puzzle together around AI and we got another big clue from Ellison/Oracle last night."
Ives is referring to the fact that Oracle has reported a 29% year-on-year increase in its revenue performance obligation (RPO) to $80 billion on the back of persistent "hypergrowth" in AI.
"We expect that 43% of our current $80 billion of Remaining Performance Obligations will be recognized as revenue over the next four quarters, and that our Gen2 Cloud Infrastructure business will remain in a hypergrowth phase—up 53% in Q3—for the foreseeable future," said Oracle CEO Safra Catz.
Ives thinks this is the latest piece of the AI revolution puzzle that investors are trying to piece together.
"The most important number for the Street is $80 billion of RPO (grew 29% yoy) that blew away Street expectations on AI/cloud demand."
Investors are trying to put a puzzle together around AI and we got another big clue from Ellison/Oracle last night. The most important number for the Street is $80 billion of RPO (grew 29% yoy) that blew away Street expectations on AI/cloud demand. AI Revolution thesis