Oracle’s cloud revenue growth hit 47% year-over-year in Q4, driven by 93% expansion in AI infrastructure demand.
Oracle’s stock has fallen over 60% from its 52-week high to $136, weighed down by heavy capital spending on data center expansion. Despite this, cloud revenue growth accelerated to 47% year-over-year in the fiscal fourth quarter, up from 28% in Q1, fueled by a 93% surge in AI-driven cloud infrastructure demand.
The company’s secure data-isolation architecture, which separates cloud control systems from customer compute nodes, has become a key differentiator. Enterprises prioritizing data privacy for AI models from providers like OpenAI and Anthropic are increasingly adopting Oracle’s cloud services.
While risks remain, the gap between Oracle’s cloud growth and its depressed stock price presents a potential buying opportunity for investors.