Oracle’s Cloud Computing Push: Two AI Stocks Poised to Outperform

Oracle's bold projection of $144 billion in cloud infrastructure revenue over the next five years has sent shockwaves through the tech sector. While ORCL shares rallied on the news, the company's heavy debt load and lack of free cash FLOW raise questions about its ability to capitalize fully on this opportunity.

The real beneficiaries may lie elsewhere. As Oracle embarks on a massive capex spree to build AI infrastructure for clients like OpenAI, Nvidia stands positioned as a primary supplier of GPU technology. Meanwhile, Microsoft's strategic decision to avoid direct infrastructure investment suggests cloud rivals are ceding ground to specialized players.

Market dynamics reveal an intriguing divergence: While the big three cloud providers (Amazon, Microsoft, Google) abstain from similar commitments, they're paradoxically outsourcing data center construction to Oracle. This creates a complex ecosystem where infrastructure enablers may ultimately reap greater rewards than the hyperscalers themselves.