More Alphabet!

“Eventually, AI will change everything…though not everyone fully grasp the extent of the tsunami that is approaching…Training AI models is a gigantic multitrillion-dollar market. It's hard to conceive of a technology market as large as that one. But if you look close, you can find one that's even larger. And it's the market for AI inferencing. Millions of customers using those AI models to run businesses and governments. In fact, the AI inferencing market will be much, much larger than the AI training market.”

-Larry Ellison (Oracle FY 1Q’26 Earnings Call)

Last night’s Oracle earnings call set almost a giddy tone for AI infrastructure investments! Oracle CEO mentioned in the call “Oracle Cloud Infrastructure will grow 77% to $18 billion this fiscal year and then increase to $32 billion, $73 billion, $114 billion and $144 billion over the following 4 years.”

For context, when I did a Deep Dive on Oracle late last year, I was modeling only ~$62 Billion revenue in FY30. Oracle is now saying more than double the number I thought was somewhat aggressive! Moreover, Oracle reported Remaining Performance Obligations (RPO) reached at an almost obscene number: $455 Billion!

However, after listening to Oracle’s earnings call as well as Thomas Kurian’s discussion at GS Communicopia conference yesterday, I inferred that I should buy even more Alphabet. I explain more behind the paywall.