Saxo Market Call Oracle rewarded for betting its capex farm on AI
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Sep 10, 2025 Ruben Dalfovo, a Saxo equity strategist, dives into Oracle's impressive earnings that sent its stock soaring, highlighting its pivot towards AI and cloud infrastructure. He unpacks Oracle's growing backlog and its competitive edge through high-quality data. The discussion also touches on the upcoming Klarna IPO, the struggles in the smartphone market, and the Fed's balancing act amid economic pressures. Dalfovo offers insights into how these factors intertwine with market dynamics, revealing a fascinating landscape for investors.
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Backlog And Multi‑Cloud Drive Oracle Re‑Rating
- Oracle's surge reflected not current revenue but a 4x backlog driven by AI demand and new multi-cloud positioning.
- The market is pricing a future curve where Oracle monetizes enterprise data and inference across clouds.
Database + Infra = Inference Edge
- Oracle pairs its legacy database franchise with both its own GPU‑heavy data centers and small platforms inside AWS, Azure and Google.
- That lets Oracle serve curated enterprise data for inference, giving it an edge in applied AI.
Monitor Cash Flow Versus Capex Burn
- Watch free cash flow conversion and ongoing FCF as Oracle's heavy capex ramps to meet bookings.
- Monitor whether the $35bn CAPEX and capacity build translate into durable returns, not just bookings.