5 reasons why a strong purchase of AI is now News ad

Oracle’s NYSE: OrCl CQ1 2025 Price correction is an opportunity for investors, because the market removes its prospects, and is not applied back. Market discharge is due to the period of enormous influence of AI on Oracle.

Unlike NVIDIA NASDAQ: NVDAWhich claims to be most of the glory of AI today, the success of Oracle is the long -term use of AI.

Parts from the Q3 report confirm the appearance of the company as a critical player in the infrastructure of artificial intelligence, events that change the game for business and technology investors. Oracle is still a small player in the world of data processing centers, but is a novice hyperscladder on the way to produce the fastest growth of all data processing centers.

1. Cool results Q3 Oracle show an increase in the AI ​​pulse

The Oracle Q3 results were cool compared to the Marketbeat consensus reported, but are still reliable, provide value for investors, and internal data show the more critical position of Oracle in the world of AI. Revenue in the amount of 14.13 billion dollars. The United States failed at 180 basic points from the weakness in obsolete enterprises, but weakness is compensated by the annual growth and force of 6.4% in the segments that count.

Service and support system, the main part of the business, increased by 10%, and cloud licenses and local contract were concluded by 10%. Within the framework of the service segment, the total cloud increased by 23%, with force in both subsection. SaAS, a weaker segment, grew by 9% with a two -digit increase in its main sentences, while IAAS grew by 49%.

2. Oracul -building on sustainable acceleration business

The business allocates 3 quarters, and the long -term management indicates an acceleration of growth and a potentially cautious forecast. The main points include $ 48 billion in new contracts, a consistent increase in business by 92% from the main hyper -estims, an increase from a lag by 62% to 130 billion dollars, as well as an income forecast to 15% in F2026, and then by 20% – F2027.

Management can be careful from increased demand from hypermeticists, including Amazon NASDAQ: AmznAlphabet NASDAQ: Googland Microsoft NASDAQ: MSFTdeals with significant AI players, including Openai and Meta Platforms NASDAQ: metand doubling throughput.

3. The new Oracle product makes it the only place to teach AI models

Oracle introduced a new innovative product, which he calls the Data Data Oracle platform. He directly connects the leading AI models, including Chapgpt, Grok and Llam, with the Oracle 23AI database. The service facilitates the training of AI models using private or public data using expanded vectorization tools.

Search based on the vector is vital for AI, since it allows machines to analyze complex data sets and order information numerically in vectors. Vectorization facilitates the search for similarities and, ultimately, an understanding, which is the key to the disclosure of the full potential of AI.

4. The AI ​​Oracle Empire generates a reliable cash flow

Oracle spends a lot on AI, but it is not enough to negatively affect the balance, given that the AI ​​Leagrengs Leagers provides.

The main points of balance from the third quarter include an increase in funds, current and total assets that partially compensate for increased liability.

Pure result is almost depressing shareholder capital up to 17.2 billion dollars. USA and a sharp reduction in debt lever.

The lever is still increasing in 5x, but this A controlled and significant improvement compared to 8x, which was reported at the beginning of the financial year.

The bottom line is that cash flow and dividends are safe, including an increase of 25%permitted by the Council.

A new payment costs $ 2.00 per year with a profitability of about 1.3%. Promotion At 145 dollars and still 35% of the income forecast.

5. Oracle analyst and institutional support is strong

Oracle analysts drop their price target indicators after the release of FQ3, but not their mood. The shares are tied to a moderate purchase with bull bias and are delivered with a forecast of 20% growth. Reducing the target price target price is a problem, but there will be little to change the prospects, most of them indicate a consensus or a higher price by the end of the year.

As for institutions, their purchasing activity increased to many years of maximum in the first quarter. Buying activities are ahead of the sale by about 4.5 billion dollars. USA or about 1% of shares, which provides strong support for the market.

Before considering Oracle, you will want to hear this.

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