Generated Title: Nvidia vs. Oracle: The Only Honest AI Stock Pick You'll Ever Need
Alright, let's get one thing straight: anyone who tells you there's a "safe" play in the AI gold rush is selling something. Probably snake oil. But if I had to pick between Nvidia and Oracle for AI dominance? One's clearly less delusional than the other.
Nvidia's Reality Check
Nvidia's numbers are, admittedly, insane. Revenue up 62%? Data center sales through the roof? Jensen Huang talking about "three massive platform shifts"? Give me a break. It's like watching a tech bro on a sugar rush.
But here's the thing: even I can't deny the guy's building something real. They make the shovels and the pickaxes for this AI land grab. The article mentions a 73.4% gross margin. That's not a typo. They're printing money faster than the Fed.
And sure, the stock's priced like it's made of unobtanium – a P/E of 45. But compare that to the alternative...
Expand NASDAQ : NVDA Nvidia Today's Change ( -4.26 %) $ -7.77 Current Price $ 174.78 Key Data Points Market Cap $4436B Day's Range $ 169.56 - $ 175.28 52wk Range $ 86.62 - $ 212.19 Volume 5M Avg Vol 193M Gross Margin 70.05 % Dividend Yield 0.02 %
Oracle's Fantasy World
Oracle, on the other hand, is selling a dream. A very expensive dream. Yeah, their cloud revenue is up 28%, and they're bragging about a $455 billion RPO (Remaining Performance Obligation) backlog. But let's be real, RPO is just a fancy way of saying "IOUs".
"We signed four multi-billion-dollar contracts with three different customers in Q1," says Oracle CEO Safra Catz. Okay, cool. Now, how much of that actually turns into cash, Safra? How much of that is vaporware promises and handshake deals that fall apart when the next shiny object comes along? And are you telling me that the Cookie Notice is still relevant in 2025?
Expand NYSE : ORCL Oracle Today's Change ( -1.81 %) $ -3.63 Current Price $ 196.65 Key Data Points Market Cap $571B Day's Range $ 185.65 - $ 196.95 52wk Range $ 118.86 - $ 345.72 Volume 780K Avg Vol 26M Gross Margin 66.10 % Dividend Yield 0.95 %
And don't even get me started on the debt. $111 billion already, and they wanna borrow another $38 billion to "expand its AI infrastructure"? That's not expansion; that's a leveraged bet on a roulette wheel. Baird lowered its price target for Oracle Corporation (NYSE:ORCL) to $315 from $365, while keeping an Outperform rating on the shares, as reported by The Fly. The analyst noted that the firm had revisited its bullish thesis but highlighted concerns around Oracle’s AI initiatives and debt levels. Baird Lowers Oracle (ORCL) Price Target to $315, Keeps Outperform Rating
Oracle Corporation (NYSE:ORCL) has raised its fiscal 2029 revenue forecast to $185 billion, up from a previous estimate of $104 billion, and projects revenue of $225 billion in fiscal 2030. This implies an annual growth rate of 31% from fiscal 2025. The company also expects non-GAAP earnings to grow 28% per year, reaching $21 per share by fiscal 2030.
I mean, come on. They're projecting 31% annual growth five years from now? That's not a forecast; that's fan fiction. What are they smoking over there?
Then again, maybe I'm being too harsh. Maybe Oracle really is about to pull a rabbit out of its hat. Maybe Larry Ellison is secretly a time traveler who knows something we don't... Nah.
The Verdict (If You Can Call It That)
Look, both these stocks are risky as hell. We're talking about valuations that are completely divorced from reality. But if I had to choose, I'd rather bet on the company that's already making money hand over fist, rather than the one that's promising to maybe, possibly, perhaps make money someday, if the stars align and pigs fly. Nvidia ain't without risks, offcourse.