oracle stock It rose 13% to about $129. Shares rose in after-hours trading Monday after the company's latest quarterly earnings report showed strong demand for its cloud services.
“As demand for our second-generation AI infrastructure significantly exceeds supply, we expect to continue to receive large contracts to reserve capacity on our cloud infrastructure,” said Safra Catz, Oracle CEO. says Mr. stated in a statement (pdf). “Even though we are opening new cloud data centers and expanding existing cloud data centers very rapidly.”
Oracle can't scale data centers fast enough to meet AI-driven demands
Catz added that Oracle's cloud infrastructure business grew 53% in the third quarter and will remain in a “hyper-growth phase” for the foreseeable future.
The oracle only represents Less than 5% of global cloud marketit is recent Market yourself as a more affordable alternative to your rivals: Amazon, Microsoft, Alphabet.
The company's cloud services generated 75% of its revenue in the third quarter, or about $9.9 billion.
to meet demand The rise of generative AILarry Ellison, Oracle's chairman and chief technology officer, said the company is building the world's largest database center.
“We're building an AI data center in the United States, and in that one data center you could park eight Boeing 747s side by side, nose to tail.” Ellison told investors on a conference call Monday.
Oracle's third quarter in digits
Overall, Oracle's net income rose 27% to nearly $2.4 billion in the three months ended Feb. 29, from about $1.9 billion a year earlier.
The company's total revenue for the quarter rose 7% to $13.3 billion from $12.4 billion.
The consensus estimate of analysts surveyed by FactSet was for earnings of $1.41 per share, beating Wall Street's estimate of $1.38.