Thanks to strong demand for cloud infrastructure and sovereign AI, Oracle's revenue and net profit in the fourth quarter financial report are expected to increase. The collaboration with Microsoft and Palantir Technologies has further promoted the development of AI applications. Investors are concerned about their future expansion plans and how sovereign AI strategies can address data privacy challenges.

Earnings Data and Growth Expectations

According to analyst estimates, Oracle's revenue for the fourth quarter of fiscal year 2024 will reach $14.57 billion, higher than the previous quarter's $13.28 billion and the same period last year's $13.84 billion. The expected net profit is 3.33 billion US dollars, an increase from the previous quarter's 2.4 billion US dollars and basically unchanged from the same period last year's 3.32 billion US dollars. The diluted earnings per share (EPS) is expected to be $1.18, higher than the previous quarter's $0.85, but basically the same as the same period last year's $1.19.

Continued growth of cloud infrastructure

Oracle CEO Safra Catz stated in March that strong demand for cloud infrastructure is driving the company's future performance growth. Catz predicts that Oracle will continue to secure large cloud infrastructure contracts and states that the company is rapidly expanding into new and existing data centers. This rapid expansion reflects the oversupply of cloud infrastructure in the era of artificial intelligence.

Artificial Intelligence Cooperation and Benefits

Recently, Oracle has established partnerships with leading AI innovation companies such as Microsoft and Palantir Technologies. Through these collaborations, Oracle has realized the monetization of AI in enterprise solutions. These collaborations enable Oracle to focus on developing edge technologies that can address key issues in the AI era, particularly sovereign AI.

The Advantages and Future of Sovereign AI

As concerns about data privacy increase and AI sovereignty comes into focus, Oracle has the potential to help governments, businesses, and organizations generate AI using their own infrastructure and data.In the upcoming earnings call, Oracle is likely to provide an update on sovereign AI and explain its unique strengths in building sovereign AI systems.

Market Expectations and Stock Price Movements

Despite macroeconomic challenges, Mizuho analysts believe that Oracle may exceed expectations due to the momentum of its cloud infrastructure and strong performance of certain applications. Since the beginning of this year, Oracle's stock price has risen by over 19%, closing at $125.92 last Friday.