Oracle's AI Infrastructure Growth Boosts Dell and HPE
Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) saw significant stock gains after Oracle Corporation (ORCL) reported a $664 billion backlog, signaling strong demand for AI infrastructure. Oracle’s fiscal first-quarter results showed total revenue rising to $19.3 billion with cloud infrastructure revenue surging 121% year-over-year to $7.4 billion. The company added over 850 megawatts of data center capacity and delivered more than 300,000 GPUs for AI clients in the quarter. Dell reported record fiscal second-quarter revenue of $47 billion with a notable increase in AI server orders to $60.9 billion and a backlog of $95 billion. HPE also experienced strong growth, reporting $12.2 billion in third-quarter revenue with its Cloud & AI segment contributing $9.04 billion. Both companies are expanding their partnerships with Nvidia for advanced computing solutions. Despite the positive momentum, Oracle’s negative free cash flow highlights the capital intensity of scaling cloud infrastructure to meet growing demand.
Topics: AI infrastructure cloud revenue data center demand stock performance