Powell’s speech, Nvidia’s chips, Meta deal - what’s moving markets
On Monday, Barclays (LON:BARC) reiterated its Overweight rating and $202.00 price target on Oracle Corporation (NYSE:ORCL) following the announcement by Nvidia (NASDAQ:NVDA) that Oracle has deployed GB200s at scale. Currently trading at $138.34, Oracle’s stock sits well below analysts’ highest target of $246, suggesting significant upside potential. The deployment is seen as a positive development for Oracle, as it could potentially drive revenue momentum in the fourth quarter and beyond. According to InvestingPro data, Oracle has demonstrated strong fundamentals with a 6.23% revenue growth over the last twelve months.
Oracle recently showcased its advancements in the new generation of artificial intelligence (AI) at its cloud day event on April 3, 2025. The event highlighted Oracle’s progress and the strides it has made in the genAI world. Nvidia’s blog post this morning added to the positive sentiment by announcing Oracle’s implementation of thousands of NVIDIA Blackwell GPUs, which are designed for agentic AI and reasoning models.
The availability of Oracle’s first set of liquid-cooled NVIDIA GB200 NVL72 racks in the Oracle Cloud Infrastructure (OCI) marks a significant milestone. These systems, equipped with NVIDIA Quantum InfiniBand networking, are now accessible through OCI. Oracle’s GB200 deployment also features NVIDIA Spectrum-X Ethernet networking and comprehensive software and database integrations from both NVIDIA and OCI.
Oracle’s swift move to deploy these AI technologies places it just slightly behind other major AI players, demonstrating the company’s rapid technology evolution. With a market capitalization of $387.5 billion and an impressive gross profit margin of 71.12%, Oracle maintains its position as a prominent player in the software industry. This is particularly noteworthy given the challenges Oracle faced in the third quarter, reported on March 11, 2025, when it struggled to convert bookings into revenue due to data center capacity constraints. The recent news from Nvidia is expected to bolster investor confidence in Oracle’s ability to overcome these hurdles. For deeper insights into Oracle’s financial health and growth prospects, InvestingPro subscribers have access to over 30 additional exclusive metrics and analysis tools.
The announcement also detailed Oracle’s plans to construct one of the largest Blackwell clusters, with the potential to scale over 100,000 Blackwell GPUs. Oracle is providing various deployment options for Blackwell through public, government, and sovereign clouds, as well as customer and partner data centers via OCI Dedicated Region and OCI Alloy.
A range of customers, including major technology firms, enterprise companies, government agencies, contractors, and regional cloud providers, are preparing to deploy workloads on OCI’s GB200 systems immediately. This broad interest underscores the significance of Oracle’s latest technological advancements and its position as one of the first providers to offer such capabilities. With an EBITDA of $22.92 billion and a strong dividend history spanning 17 consecutive years, Oracle demonstrates both operational excellence and shareholder commitment. Discover more detailed analysis and valuable insights about Oracle’s market position in the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Oracle has secured a task order to provide cloud services to the U.S. Army’s Enterprise Cloud Management Agency, as part of the Department of Defense’s Joint Warfighting Cloud Capability contract. This development aims to support the Army’s digital transformation with a secure multicloud ecosystem. Oracle’s Defense Cloud is tailored to meet stringent government requirements, offering cost savings and simplifying the migration of on-premises environments to the cloud. Additionally, Cantor Fitzgerald has maintained an Overweight rating on Oracle, noting the company’s expanding presence in the cloud sector. Oracle’s strategies, including aggressive discounting and bundling of services, are positioning the company to capture more opportunities beyond its traditional customer base. The company has been recognized for its innovative cloud solutions, such as Oracle Cloud Infrastructure, which utilize advanced technology to improve performance and efficiency. These developments reflect Oracle’s ongoing efforts to strengthen its position in the competitive cloud market.
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