Oracle (NYSE: ORCL), one of the biggest players in the artificial intelligence (AI) hardware ecosystem, released its fiscal 2026 results (for the year ended May 31) on June 10.
The reaction to the company’s financial results wasn’t great, as concerns about its fast-growing capital expenditures and mounting debt to finance the build-out of new data centers led investors to press the panic button
However, Oracle’s results make it clear that the investments in AI data center infrastructure won’t be slowing down any time soon, which is great news for Nvidia (NASDAQ: NVDA). Oracle has indicated that GPU demand remains solid A closer look at Oracle management’s comments on the latest earnings call indicates that demand for graphics processing units (GPUs) in data centers remains robust. Oracle noted that the global utilization rate of GPUs in data centers stood at a solid 97.5% last quarter.
This high utilization rate suggests that GPUs remain in high demand for running AI workloads in data centers. This bodes well for Nvidia, which controls an estimated 80%-90% of the AI accelerator market. What’s more, Oracle is on track to significantly increase its capital expenditure this year, suggesting that the demand for Nvidia’s GPUs will continue to increase.