Oracle, the world's largest developer of software for organizations and a major supplier of server equipment, reported a significant increase in orders for future artificial intelligence services for its cloud infrastructure division. This caused shares to rise by 27% to a record level in after-hours trading, according to UNN, citing Financial Times.
Details
The company's remaining performance obligations - orders that will be fulfilled in the future and generate revenue - rose to $455 billion, compared to just $138 billion three months ago.
CEO Safra Catz called it an "amazing quarter," during which Oracle signed "four multi-billion dollar contracts with three different customers" in the last three months.
It is also reported that the surge in growth has led Wall Street analysts to wonder how Oracle can scale computing power quickly enough to meet the new demand, while most cloud companies complain about chip shortages.
Recall
Shares of Apple, the technology giant, fell by 1.3%. This happened after the new iPhone 17 models were unveiled.