u/AbbreviationsKey244

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[ Removed by Reddit on account of violating the content policy. ]

I’ve been watching Oracle pretty closely lately, and honestly I think the market still doesn’t fully understand what this company is becoming.

Most people still treat it like some old-school database software company, but it’s clearly moving hard into AI cloud infrastructure now — and they’re being way more aggressive than people realize.

Meanwhile Wall Street keeps debating whether AI spending is getting out of control, whether capex is too high, whether there’s a bubble, etc.

But the companies actually building AI don’t seem to be slowing down at all. They’re still racing for GPUs, power, networking, and data center capacity.

Personally, I’d rather trust the people building AI than the people sitting around modeling it.

Especially now that AI is moving toward the agent phase, inference demand is becoming huge. GPUs are tight, power is tight, networking is tight… basically every part of the infrastructure stack is becoming a bottleneck.

And in this kind of environment, speed matters more than anything.

The companies expanding capacity first are the ones getting pricing power and locking in revenue first. The market has honestly been rewarding that exact trade for months now.

What caught my attention with Oracle is how aggressive they’ve become.

Their capex this year is expected to hit around $50B, which is almost 10% of their market cap. Relative to size, that’s even more aggressive than Microsoft, Google, or Amazon.

And at the same time, their remaining performance obligations reportedly exploded to over $550B. That number was nowhere near this size not long ago.

If they can actually deliver these data centers and convert that backlog into revenue over the next few years, I honestly think the market will start repricing the stock completely differently.

At this point I don’t even see Oracle as a traditional software company anymore.

Feels more like an AI hyperscaler that the market still hasn’t fully priced in yet.