Oracle sees AI boom through at least 2027, sending shares up 8%

STORY: :: Oracle

Oracle on Tuesday predicted that the AI data center boom will power its revenue above Wall Street estimates well into 2027.

That sent shares in the firm up over 8% in extended trading.

Oracle reported third quarter revenue of just over $17 billion, beating estimates.

It expects fourth-quarter revenue growth of up to 21%.

Tuesday's results helped allay investor concerns over Oracle's costly multi-billion dollar push into AI computing.

:: Oracle

:: File

The company has made a dramatic turn toward building data centers for partners such as OpenAI and Meta.

At the same time, it enacted layoffs as it uses smaller engineering teams and AI coding tools to roll out new software.

:: Oracle

:: File

Oracle has also been aggressively spending to expand its cloud infrastructure to support generative AI, competing against hyperscalers such as Amazon's AWS and Microsoft's Azure.

On a conference call with investors, CEO Clay Magouyrk said that the company's margins on its cloud business should improve over time.