Oracle's AI Push Faces Stock Price Volatility: Patience Needed for Gains
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Oracle Corporation has recently made significant investments in artificial intelligence, and its co-founder Larry Ellison is also a strong supporter of this initiative. However, after the announcement of its first-quarter earnings for the 2024 fiscal year, Oracle's stock price fell by nearly 5% within a month. Analysts believe that the commercialization of artificial intelligence requires time, which is typical for such technologies. Oracle is incorporating generative AI capabilities into its software products and expanding its data centers to support AI computing for its clients. However, this requires substantial capital expenditure and faces challenges such as GPU supply shortages. Analysts predict that Oracle will ultimately benefit from generative AI, but short-term profit growth may be hindered. Patience is needed to await the realization of the returns on investments in artificial intelligence.
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