Oracle Has Fantastic News for Nvidia Stock Investors - Yahoo Finance

Oracle's release of its fiscal 2026 (ending May 31) results, while initially met with investor concern due to rising capital expenditures and debt, signals continued investment in AI infrastructure—po... Read original →

Oracle’s aggressive AI capex reflects a strategic bet on compute scarcity, not fiscal recklessness. Its 97.5% GPU utilization signals AI workloads are hitting physical scaling limits, accelerating demand for HBM3e/4 and NVLink interconnects—and intensifying competition for TSMC’s CoWoS capacity. Geopolitically, tightening U.S. export controls on AI chips to China paradoxically cement NVIDIA’s indispensability in compliant cloud stacks, as Oracle must rely on BIS-authorized A100/H100 variants. AMD’s MI300X gains remain constrained by CUDA’s ecosystem moat, while Taiwan, China-based suppliers cannot yet bypass U.S. equipment bans to build viable alternatives. With $638B in customer prepayments converting into GPU order momentum, NVIDIA’s architectural lead and software stickiness will likely secure over 85% of AI accelerator profits by 2027—far exceeding its revenue share.