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 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.
See Also: Every $1 Spent On This Nvidia GPU Could Result In Up To $12 In Additional Tech Spending: Analyst
"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."
Catz also teased an upcoming announcement with AI chip leader Nvidia Corp. NVDA in the next week.
"We expect to have some very nice joint announcements with NVIDIA next week."
Why It Matters: This comes a day after Ives underlined that every $1 spent on an Nvidia GPU could result in additional spending of up to $12 across the tech ecosystem, creating a ripple effect leading to an AI revolution.
Earlier, Ives said another hint about the AI revolution that has been confirmed is the fact that mid-cap tech artificial intelligence company c3.ai Inc. AI beat the Street's expectations with its fiscal fourth-quarter results.
Joining Ives in the upbeat sentiment around AI is Deepwater Asset Management's managing partner Gene Munster, who thinks Apple Inc.'s AAPL AI play is a $33 billion opportunity.
Price Action: Oracle stock closed 12.15% up at $128 on Monday, according to Benzinga Pro.
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