Oracle Corp. (NYSE:ORCL) has echoed Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang’s bullish view on AI hardware longevity.
Oracle Says Older GPUs Are Gaining Value
During Oracle’s fiscal 2027 first-quarter earnings call, CEO Clay Magouyrk highlighted the continued strength of the company’s AI infrastructure business.
"GPU longevity and value continue to impress," Magouyrk said. He added that all the GPU capacity coming up for renewal in the quarter was either renewed or resold at a 20% premium to previous contracts, with most of those GPUs being at least four years old.
"We see a long useful life with increasing value for the AI capacity we’re deploying," Magouyrk said.
Nvidia GPUs Are Staying Busy
Magouyrk also said the company delivered 850 megawatts of AI capacity containing more than 300,000 GPUs since the end of its previous quarter.
First-quarter deliveries were nearly three times Oracle’s fourth-quarter figure and represented 73% of the capacity delivered throughout the prior fiscal year.
Oracle also closed more than $30 billion in additional AI contracts during the quarter without requiring additional capital, while GPU utilization remained extremely high at 97.9%.
Jensen Huang’s Long-Term GPU Bet
The comments come days after Huang reiterated his view that AI computing should be viewed as a productive asset rather than rapidly depreciating technology.
"NVIDIA compute is fungible, durable and highly rentable," Huang wrote on X. "It is a productive, revenue-generating asset."
Huang has also argued that Nvidia’s older hardware can remain useful for years. In August, he said Nvidia’s A100 GPUs are "mission-capable from 2020 through 2029."
Nvidia has partnered with major investment firms, including Apollo Global Management (NYSE:APO), BlackRock Inc. (NYSE:BLK), Blackstone Inc. (NYSE:BX), Brookfield Asset Management (NYSE:BAM), Goldman Sachs (NYSE:GS) and KKR & Co. Inc. (NYSE:KKR), to help mobilize more than $500 billion in capital over time.
Oracle Q1 Earnings Beat Estimates
Oracle reported quarterly earnings of $1.92 per share, topping the analyst consensus estimate of $1.74 by 10.34%.
Quarterly revenue came in at $19.35 billion, ahead of the Street estimate of $19.14 billion and up from $14.93 billion in the year-ago quarter.
For the second quarter, Oracle expects revenue growth of 30% to 34% and cloud revenue growth of 65% to 71%, while forecasting adjusted earnings per share of $1.85 to $1.93.
Price Action: Oracle closed at $152.94, down 5.38% on Thursday. The shares rose 4.13% to $159.26 in after-hours trading, according to Benzinga Pro.
Benzinga Edge Stock Rankings place Oracle in the 96th percentile for Growth, while its price trends indicate short-term upside but continued weakness over the medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Grand Warszawski / Shutterstock – ek
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