Tag: Oracle.
Clearly a bigger story than the Apple presentation today. LOL.
Where were you:
- November 22, 1963?
- July 20, 1969?
- September 11, 2001?
- September 9, 2025?
Supply chain shortages, energy shortage, and capital (cash) shortage: all being discussed by D. A Gil Luria, D. A. Davidson's Managing Director, right now on CNBC -- 4:19 p.m. CT -- interestingly enough, if you follow Apple closely enough, Apple seems to be addressing these challenges as well as or better than anyone. Remember, Tim Cook's expertise was in logistics. Apple's biggest concern? TSMC. ChatGPT confirms.
"Wild bullishness" -- not a short squeeze. Or, saying it another way, this. is not a short squeeze, this is simply wild bullishness. Oracle is now up almost $70 / share and almost up 30% after hours (4:07 p.m. CT). Its market cap is now trending toward $900 billion, which is closer to $1 trillion than it is to $0 trillion.
This is the big story: the tech CEOs are likely seeing the same demand that Oracle is seeing / reporting. For as long as I've been watching CNBC it's always been about "backlog" when it comes to Boeing. All of a sudden we're talking about "backlog" in AI.
Jamie Dimon: the economy may be getting weaker.
CNBC: so much for that meme that AI is overdone.
The CNBC guests are using words like "historic"; phrases "like do you remember where you were when Oracle popped?" One needs to listen to the interview with Ben Reitzes, Melius Rearch, Technology Research Head, talking on this whole story, and mentioning Stargate when has been a huge story on the blog.
Wow: 3:55 p.m., less than an hour after earnings were reported: Oracle is up almost $60 on a $250-stock. Everybody thought the big story today would have been AAPL. Turns out that the big story today was Oracle and "everybody" missed it. Broadcom was recently added to "the magnificent seven" making that group "the great eight." We're getting close to the "tremendous ten."
Wasn't there a story about Larry Ellison, Oracle, buying Nvidia chips to rent?
Yes, that story is accurate. Oracle, led by Larry Ellison, has invested billions of dollars into buying a massive number of NVIDIA GPUs to offer as cloud computing power to other companies, including OpenAI.
Here are the key details of the deal:A huge investment: In May 2025, reports indicated that Oracle intended to purchase around 400,000 of NVIDIA's GB200 AI chips, with a total value of approximately $40 billion.
Powering OpenAI's AI models: The computing power from these chips is being leased to OpenAI to reduce its dependence on its backer, Microsoft, and meet the growing demand for training its large AI models.
The "Stargate" project: The hardware is being used to build a new U.S. data center in Abilene, Texas, as part of the "Stargate" project, which is designed to bolster America's AI infrastructure.
The infamous dinner: In September 2024, Larry Ellison revealed that he and Elon Musk had "begged" NVIDIA CEO Jensen Huang for more GPUs during a dinner. At the time, they faced a supply shortage, which illustrated the intense demand for NVIDIA's AI chips.
Later: Oracle surges 20% even after missing on both the top line and the bottom line. Holy mackerel.
This was earlier.
Despite a miss on both the top and the bottom line.
Up $30.
Up over 11%
Missed on both upper and lower item but underlying numbers are incredible.
The big story: hyperscalers like Amazon and Microsoft not able to satisfy / meet demand from their own customers and they (MSFT, AMZN) need to rent back blades from Oracle to meet their own needs / meet the demand of their existing AI customers. Wow.
