Oracle Stock: What The Hell Happened? (And What The Analysts Won't Say)
Nvidia vs. Oracle: Which AI Stock is the *Least* Likely to Tank?
Okay, let's be real. Picking between Nvidia and Oracle as the "better" AI stock is like choosing which flavor of lukewarm tap water you want to drink. Neither one is exactly screaming "sure thing" right now, are they?
Nvidia's riding high on this whole AI hype train, and yeah, their numbers are staggering. 62% revenue growth? 73.4% gross margin? It's insane. But insane in a "this can't possibly last" kind of way. CEO Jensen Huang's talking about "three massive platform shifts" happening all at once. Translation: "Please keep buying our stuff so we can keep this gravy train rolling."
And a $4.4 trillion market cap? Give me a break. I'm not saying they don't deserve some credit, but that valuation is pricing in, like, ten years of perfect execution. What happens when (not if, when) someone else comes along with a better chip, or the AI bubble bursts?
Oracle, on the other hand, is the old guard trying to muscle its way into the new world. Their cloud business is growing, sure, but at a snail's pace compared to Nvidia. Still, they're bragging about a 359% increase in RPO contract backlog. But as that DA Davidson analyst pointed out – and I quote because it's too good not to – Oracle "was a pawn in the grand game of fake it 'till you make it." Ouch.
I mean, come on. A $300 billion contract that hinges on OpenAI of all companies? The same OpenAI that's apparently signing trillion-dollar deals left and right? Yeah, that sounds totally legit. It's almost as believable as that time I won the lottery, except I never bought a ticket. Why Oracle Stock Sank Today offers further insight into investor reactions to Oracle's performance.
Oracle's trading at a similar price-to-earnings ratio as Nvidia, which is just... baffling. 46 times earnings for a company growing at a fraction of Nvidia's rate? What are we even doing here? It's like paying the same price for a rusty old pickup truck as you would for a brand new sports car.
The Lesser of Two Evils (Maybe)
So, if you absolutely have to pick one, the consensus seems to be Nvidia. Fine. I guess. At least they're actually making money hand over fist right now. And yeah, their AI computing franchise is leading the way. But "safer" doesn't mean safe. It just means slightly less likely to implode spectacularly.
The article says investors need "patience and a tolerance for volatility." What it should say is "a strong stomach and a willingness to lose money." Because let's be honest, betting on any company at the forefront of an "unprecedented computing boom" is basically gambling.
I'm also seeing some cookie notice bs about how the website tracks me. Offcourse, because that's what everything does now.
The Real Question No One's Asking
Here's what really gets me: Why are we even treating these companies like they're the only game in town? There are tons of other AI-adjacent companies out there, some of which might actually be, you know, undervalued. Are we all so blinded by the shiny objects that we can't see the forest for the trees?
And another thing: What happens when the government steps in? All this talk about AI regulation... eventually, someone's going to try to put the brakes on this runaway train. And when that happens, these high-flying stocks are going to come crashing back down to earth. Maybe. I don't know. Maybe I'm being too cynical. Maybe I should just shut up and buy some Nvidia stock like everyone else.