Mon Sep 09 15:00:47 UTC 2024: ## Oracle Soars on Strong AI Demand and Cloud Partnerships

**Oracle (ORCL) stock surged over 11% on Tuesday after the tech giant reported better-than-expected first-quarter earnings, driven by strong demand for artificial intelligence (AI) services.**

The company reported adjusted earnings of $1.39 per share on sales of $13.3 billion for the quarter ended August, exceeding analyst expectations. Oracle’s sales grew 7% year-over-year, while earnings increased 17%. The strong performance was attributed to the growth of its cloud services business, which has become Oracle’s largest segment.

**Oracle’s cloud infrastructure revenue jumped 45% to $2.2 billion, fueled by a surge in demand for graphics processing units (GPUs), which power AI model training.** Oracle highlighted its recent win of 42 new cloud contracts for GPUs, worth a total of $3 billion. The company is also constructing a massive data center equipped with Nvidia (NVDA) GPU Clusters to support large-scale AI model training.

**In a major strategic move, Oracle announced a multi-cloud partnership with Amazon Web Services (AWS), the largest provider of cloud servers.** The partnership will allow Oracle Database technology to seamlessly connect with AWS services, offering customers greater flexibility and choice.

**Analysts are optimistic about Oracle’s future prospects, citing the strong growth in cloud services and the company’s commitment to AI.** Barclays analyst Raimo Lenschow believes the large number of new bookings suggests Oracle is well-positioned to accelerate revenue growth in the coming years.

**This news comes as Oracle stock has already enjoyed a strong year-to-date performance, gaining over 30% before the earnings release.** The stock’s momentum is driven by the success of its Oracle Cloud Infrastructure business and its focus on the rapidly growing AI market.

**Oracle’s partnership with AWS is a significant development, demonstrating the company’s willingness to collaborate with competitors to meet the evolving needs of its customers.** The deal also suggests that the long-standing rivalry between Oracle and Amazon is easing, paving the way for potential future collaborations.

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