This AI Infrastructure Company Has a $638 Billion Backlog and Is Trading Near an 18-Month Low
If this company can deliver on its orders without too much financial strain, it could be a big winner.
Overview
Oracle (NYSE: ORCL) is set to be a major beneficiary of the AI infrastructure boom. The company has accumulated a $638 billion backlog of business, which is equal to about eight years of revenue at the current annual run rate. In the most recent quarter alone, $67 billion in new AI infrastructure contracts were signed.
However, it's fair to say that many investors are a little skeptical, with the stock down by more than 55% from its 52-week high. There are two main unanswered questions that seem to be weighing on Oracle's stock price. First, can the companies committing to spend billions with Oracle actually meet these obligations? Second, can Oracle deliver on its backlog while balancing the need to raise capital to do so?
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Originally published at www.fool.com.