Prediction: These 2 AI Stocks Will Be the Biggest Winners From Oracle's Huge Cloud Computing Push. (Hint: Oracle's Not One)

Oracle (NYSE: ORCL) shocked investors recently when the company projected that its cloud infrastructure revenue would skyrocket to $144 billion in the next five years. On top of that, this revenue growth was basically locked in through non-cancellable contracts. While Oracle's stock skyrocketed on the news, I don't think it's going to be the biggest winner of its cloud computing push. The company already carries a heavy debt load and isn't currently generating any free cash flow. Meanwhile, it'll have to spend an enormous amount of money on capital expenditures (capex) in the next few years to capture this revenue.It's also worth noting that the economics of this revenue aren't certain, and the big three cloud computing providers -- Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) -- basically decided not to pursue this opportunity. OpenAI will presumably be one of Oracle's big customers in this buildout. Close partner Microsoft decided earlier to tap the brakes instead of committing to spending so much money on new artificial intelligence (AI) infrastructure for it. Meanwhile, the big three cloud computing companies are also letting Oracle build some data centers for them, instead of building them themselves.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool