Oracle's shares experienced a jump following an optimistic forecast for its cloud division. The company's chief executive anticipates the cloud infrastructure business will expand by over 70% in the upcoming fiscal year. This projection has instilled confidence among investors, highlighting Oracle's potential to capitalise on the increasing demand for cloud services. Oracle is working to bolster its AI infrastructure as firms look to adopt generative AI. However, frontrunners Amazon and Microsoft continue to dominate the market.
Oracle's cloud infrastructure division, a competitor to industry giants like Amazon Web Services and Microsoft Azure, has experienced a notable slowdown in revenue growth over the past three quarters. Sticky inflation and high borrowing costs have forced firms to cut back on expenditure, hurting companies like Oracle that depend on enterprise spending. Despite these challenges, Oracle's upbeat forecast signals strong future growth, driven by increasing adoption of generative AI technology.
