Oracle Corp‘s (NYSE:ORCL) accelerating AI cloud business is giving investors another way to play the artificial intelligence boom beyond Nvidia and other chipmakers, putting AI-focused ETFs with exposure to the software giant in focus.
Oracle reported first-quarter revenue of $19.3 billion, up 30% year over year, while cloud revenue jumped 62% to $11.6 billion. Oracle Cloud Infrastructure (OCI) revenue surged 121% from a year earlier, accelerating sharply from 93% growth in the previous quarter.
The company also signed more than $30 billion in new AI infrastructure contracts during the quarter, lifting remaining performance obligations (RPO) to a record $664 billion.
The strength has prompted D.A. Davidson technology analyst Gil Luria to call Oracle "by far the most attractive AI cloud," according to CNBC. He argued that the company has effectively transformed into a "neo cloud" and now has more AI compute contract backlog than Microsoft Corp, Amazon.com, Inc and Alphabet, Inc.
That makes ETFs holding Oracle alongside other AI infrastructure leaders an increasingly interesting way to capture the trend.
