Updated
Updated · Yahoo Finance · Aug 12
Oracle, Supermicro Show AI Strength in Fiscal 2026 as Billions in Cash Burn Persist
Updated
Updated · Yahoo Finance · Aug 12

Oracle, Supermicro Show AI Strength in Fiscal 2026 as Billions in Cash Burn Persist

3 articles · Updated · Yahoo Finance · Aug 12

Summary

  • $638 billion in Oracle backlog and a doubled Supermicro gross margin underscored strong AI demand in fiscal 2026, even as both companies burned billions in cash.
  • Oracle’s cloud infrastructure revenue jumped 93% to $5.79 billion in Q4, helping total cloud reach $9.91 billion, 52% of quarterly sales, and supporting its $90 billion FY2027 revenue target.
  • Supermicro posted non-GAAP EPS of $1.70 versus a $0.96 consensus despite revenue of $11.12 billion missing estimates, while GAAP gross margin rose to 17.5% from 9.5% a year earlier.
  • 72 Oracle multicloud datacenters embedded inside AWS, Google and Microsoft highlight its chip-neutral expansion strategy, while Supermicro’s biggest overhang remains an export-control review and broader governance risk.
  • Oracle’s 36% operating margin and multicloud footprint make it the cleaner AI infrastructure play, while Supermicro offers higher upside tied more directly to hardware-cycle execution.

Insights

With Oracle planning a staggering $95 billion data center expansion, could this massive AI debt burden eventually crush their cloud ambitions?
As DOJ indictments and export probes mount, will Supermicro's governance crisis ultimately derail its highly lucrative AI server empire?