Oracle CEO Highlights Longevity of AI Hardware, Echoing Nvidia's View
During Oracle Corp.'s fiscal 2027 first-quarter earnings call, CEO Clay Magouyrk emphasized the enduring value and longevity of GPU hardware in its AI infrastructure. He noted that GPUs up for renewal were either renewed or resold at a 20% premium compared to previous contracts, with most being four years old. Oracle delivered over 300,000 GPUs across more than 850 megawatts of AI capacity during the quarter and closed $30 billion in new AI contracts without additional capital investment. The comments align with Nvidia CEO Jensen Huang's recent assertion that AI computing should be viewed as a durable asset rather than rapidly depreciating technology. Huang described NVIDIA compute as 'fungible, durable and highly rentable,' adding that older hardware can remain mission-critical for nearly a decade. Oracle’s Q1 results beat expectations, reporting $1.92 per share in earnings versus the estimated $1.74. Oracle also expects strong growth ahead with projected revenue increases of 30% to 34%, cloud revenue rising by up to 71%, and adjusted EPS between $1.85 and $1.93 for Q2.
Topics: AI GPU longevity Nvidia Oracle renewals