Oracle Partners with AMD to Boost Cloud Infrastructure and AI Capabilities: A Game-Changer in the Cloud Computing Landscape

Oracle, Inc. (ORCL) is leveraging its Oracle Cloud Infrastructure (OCI) to drive growth in artificial intelligence (AI). In the fourth quarter of fiscal 2025, OCI consumption revenues jumped 62%, reflecting rising demand for high-performance computing, particularly for AI and agentic workloads. Infrastructure cloud services now have annualized revenues of nearly $12 billion. Oracle reported $6.7 billion in total cloud revenues in the fourth quarter of fiscal 2025, suggesting a 27% year-over-year growth. To further boost its AI capabilities, Oracle has partnered with AMD on June 12, integrating AMD Instinct MI355X GPUs into Oracle Cloud Infrastructure. The collaboration offers more than 2X price-performance compared with the previous generation, enabling significant efficiency gains for large-scale AI training and inference workloads. Another key driver of Oracle’s cloud momentum is its aggressive global data center expansion. The company is currently live in 23 cloud regions with a database on cloud services and has another 47 planned. OCI revenues are expected to grow more than 70% in fiscal 2026. To support this aggressive expansion, Oracle deployed $9.1 billion in capital expenditures in the reported quarter, totaling $21.2 billion in fiscal 2025. The company plans to invest $25 billion in fiscal 2026. However, Oracle faces tough competition from formidable rivals like Amazon Web Services (AWS) and Microsoft Azure in the cloud computing landscape. AWS remains the global leader in cloud infrastructure, commanding roughly one-third of the market, while Microsoft Azure excels at embedding advanced AI capabilities directly into widely used business applications like Microsoft 365, Dynamics 365, and GitHub. From a valuation standpoint, ORCL trades at an EV/EBITDA multiple of 26.7x, significantly higher than the Zacks Computer-Software industry average of 19.24x. The Zacks Consensus Estimate for ORCL’s fiscal 2026 revenues is pegged at $66.73 billion, indicating 16.25% year-over-year growth, while the consensus mark for ORCL’s 2026 earnings is $6.68 per share, up four cents over the past 30 days. The earnings figure indicates 10.78% growth from the figure reported in fiscal 2025. Currently, ORCL stock carries a Zacks Rank #4 (Sell). However, investors can explore the complete list of today’s Zacks #1 Rank (Strong Buy) stocks for potential investment opportunities. Additionally, Zacks Investment Research offers a free report on the 7 Best Stocks for the Next 30 Days, which can be downloaded today to stay updated on the latest recommendations from Zacks Investment Research.