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Oracle Corporation (ORCL) reported a substantial increase in remaining performance obligations, surging 359% to $455 billion, supported by a historic $300 billion contract with OpenAI starting in 2027. During the latest quarter, Oracle’s Cloud Infrastructure revenue grew 55%, nearing an annual run rate of $18 billion for fiscal 2026. In contrast, Microsoft Corporation (MSFT) has achieved over $40 billion in quarterly cloud revenues, growing at 21% year-over-year, alongside a $13 billion annual run rate for its AI business.
Microsoft plans to invest $30 billion in the UK, building the largest supercomputer there with 23,000 NVIDIA GPUs, while continuing to integrate AI capabilities across its product lines including Azure and Copilot. Year-to-date, Microsoft shares are up 20.6%, while Oracle has seen a remarkable 78% surge.
Despite Oracle’s rapid growth and impressive backlog, Microsoft’s diverse AI monetization avenues and established global infrastructure position it as a more stable investment choice. Oracle holds a Zacks Rank of 3 (Hold), while Microsoft has a Zacks Rank of 2 (Buy).
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