Bonus: They May Rename Silicon Valley After This  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

March 11, 2026   |   Read Online Oracle Rips Higher After Earnings — Is It Still Cheap? Bonus: They May Rename Silicon Valley After This First a message from our friends at The Oxford Club (Sponsor) They May Rename Silicon Valley After This Dear Reader, After highlighting Rolls-Royce (RYCEY) around $2 in 2022 — now trading near $16 — I started looking for another early-stage opportunity tied to the next wave of technology infrastructure. That search led me to a small semiconductor firm that recently entered a partnership with a major technology company around a new chip architecture. What caught my attention were a few technical details: • Uses roughly 40% less power • In testing, performance measured up to 100× faster in certain workloads • The design recently set two independent performance records The company itself is still relatively small — with a market value around $2 billion — but it holds several patents tied to this new approach to chip design. According to industry observers, those patents could become increasingly important as AI computing demand continues to accelerate. Several large technology companies have already begun exploring partnerships around this architecture. One reason is efficiency. Modern AI data centers require enormous amounts of electricity, and improvements in energy efficiency are becoming just as valuable as raw computing speed. This particular design reportedly delivers both. In fact, early demonstrations suggest the chip can process certain tasks significantly faster while consuming far less energy than traditional designs. The company recently announced a collaboration with Nvidia, which is currently one of the most important suppliers of hardware used in AI systems. That partnership alone has drawn attention from analysts who follow emerging semiconductor technologies. What makes the situation interesting is that this firm controls key patents tied to the underlying technology. If adoption continues, those patents could become valuable as large-scale AI infrastructure expands. For investors who follow the semiconductor sector, it may be worth taking a closer look at the company and the technology behind it. You can review the details here. Yours in smart speculation, Karim Rahemtulla, Head Fundamental Tactician Monument Traders Alliance FEATURED ARTICLE Oracle Rips Higher After Earnings — Is It Still Cheap? You woke up this Wednesday morning, March 11, 2026, and Oracle is trading at $165.33 — up 9.09% before the opening bell even rings. The stock closed at $151.56 the night before. That means $13.77 per share was added overnight, while most investors were still pouring their first cup of coffee. This is not a meme-stock pop. This is not a short squeeze. This is a 47-year-old enterprise software company — the same one critics have been writing off for a decade — printing the strongest organic growth numbers it has produced since before the iPhone existed. Let's break down what just happened. THE SCOREBOARD: What Actually Happened Oracle reported Q3 Fiscal Year 2026 results, and the headline numbers weren't just good — they were the type of numbers that force analysts to rip up their models and start over. Here is the scoreboard: Oracle Q3 FY2026 Results Total Revenue: $17.2 billion (+22% year-over-year) Non-GAAP EPS: $1.79 vs. $1.70 consensus (5.3% beat) Cloud Infrastructure (IaaS): +84% year-over-year Remaining Performance Obligations (Backlog): $553 billion (+325% YoY) Organic Revenue Growth: 20%+ (first time in 15 years) EPS Growth: 20%+ (first time in 15 years) FY2027 Revenue Guidance: Raised to $90 billion (vs $86.6B consensus) FY2026 CapEx Plan: $50 billion maintained Pre-market price: $165.33 (+9.09%) as of 7:45 AM ET 52-week range: $118.86 – $345.72 Every one of these metrics matters. But one number matters more than all the others: $553 billion in backlog. We'll come back to that. THE REAL REASON: Expectations vs Reality To understand why this earnings report matters, you need to understand the narrative Oracle was fighting going into earnings. Call it the "SaaSpocalypse" thesis. The argument went like this: AI tools such as GitHub Copilot, custom large language models, and open-source automation would eliminate the need for traditional enterprise software. Companies would stop paying Oracle's license fees. Instead they would build their own ERP, database, and analytics systems. Oracle's core business would slowly erode. The stock would become a value trap wearing a tech costume. The market partially priced in this fear. Oracle's stock peaked at $345.72, then collapsed to $118.86. That is a 65% drawdown for a company producing $17+ billion in quarterly revenue. Investors were clearly nervous. What this earnings report just said — loudly — is this: The SaaSpocalypse thesis was wrong. Not slightly wrong. Catastrophically wrong. Oracle isn't being replaced by AI. Oracle is becoming one of the core infrastructure providers running AI itself. The 9% pre-market surge is the market repricing that realization. DEEP DIVE: How Oracle's Business Model Has Changed Oracle was founded in 1977 by Larry Ellison. For decades the company followed the classic enterprise software model: Sell expensive database licenses Charge annual maintenance fees Generate slow, predictable growth Today the company operates across three primary segments. 1. Cloud Services and License Support The recurring revenue engine. This includes: Fusion ERP NetSuite Cerner healthcare cloud Database subscriptions Legacy support contracts It remains Oracle's highest-margin segment. 2. Cloud License & On-Premise Software This segment is shrinking but still profitable. Companies continue buying perpetual database licenses and middleware. Think of this as a slowly winding down annuity. 3. Hardware Oracle's engineered systems such as: Exadata Exalogic These systems are increasingly integrated directly into cloud infrastructure. The Real Catalyst: Oracle Cloud Infrastructure (OCI) The real story behind this earnings report is OCI. Oracle's cloud platform has long been viewed as a distant competitor to AWS, Azure, and Google Cloud. But the AI infrastructure boom changed the competitive landscape. OCI suddenly offered something hyperscalers struggled to provide: Dedicated GPU clusters Rapid deployment timelines Competitive pricing Sovereign data infrastructure And that last point is the most important. The Sovereign AI Opportunity Governments across: Europe The Middle East Asia do not want their national AI systems hosted on infrastructure controlled by U.S. hyperscalers. They want domestic data control. Oracle and Nvidia stepped into that gap. Together they are building "Sovereign AI Factories" — AI data centers that operate entirely inside national data borders. The model is simple: Data stays local Compute stays local The AI models belong to the nation This is an entirely new category of infrastructure demand. And Oracle is currently one of the few companies positioned to supply it at scale. DATA SECTION: The Numbers That Drive the Investment Case Revenue Growth Oracle generated $17.2 billion in revenue, up 22% year-over-year. For context: Oracle spent much of the last decade growing in the low single digits. This is a structural acceleration, not a one-time event. IaaS Growth Cloud Infrastructure revenue surged 84% year-over-year. That is extraordinary growth at Oracle's scale. It suggests OCI is: Winning AI workloads Capturing hyperscaler overflow demand Becoming a credible AI infrastructure provider The $553 Billion Backlog Remaining Performance Obligations reached $553 billion. That is 325% growth year-over-year. In practical terms: Oracle customers have already signed contracts committing $553 billion in future payments. At Oracle's current revenue pace (~$17B per quarter), that backlog represents more than eight years of revenue visibility. Few companies in technology have anything close to that level of demand visibility. Earnings Growth Oracle delivered $1.79 EPS, beating estimates by 5.3%. More importantly: EPS is now growing 20%+ annually. This confirms Oracle's cloud pivot is producing operating leverage, not just revenue expansion. CapEx Commitment Oracle maintained its $50 billion capital expenditure plan for FY2026. That is enormous. It represents roughly 73% of annual revenue reinvested into infrastructure. Management is making a clear bet: AI infrastructure demand will justify the spending. IS IT CHEAP? At $165.33 pre-market, Oracle's market cap sits around $429 billion. Trailing P/E: 28x Dividend yield: 1.34% This is not an income stock. It is a growth infrastructure story. But here's the critical perspective: 52-week high: $345.72 Current price: $165 Even after a 9% earnings pop, Oracle still trades over 50% below its peak valuation. And the business today is materially stronger. Forward Valuation Oracle projects $90 billion in revenue by FY2027. Assuming net margins reach mid-20% levels, the company could generate: $20–22 billion in net income. That would place Oracle's forward P/E around 19–21x. For a cloud infrastructure company growing IaaS at 84%, that valuation may actually be conservative. BULL / BASE / BEAR SCENARIOS Bull Case Sovereign AI contracts scale rapidly OCI growth remains above 60% Revenue reaches $90B+ by FY2027 Oracle re-rates as an AI infrastructure company Target: $200–$250 by 2026 Base Case OCI growth slows to ~50% Revenue reaches $85–$88B Stock trades sideways as backlog converts Range: $160–$185 Bear Case CapEx strains the balance sheet Hyperscalers cut GPU pricing Sovereign AI deployments slow Range: $130–$140 ACTION PLAN: How a Bargain Hunter Plays This Chasing a 9% pre-market gap is dangerous. Earnings gaps frequently retrace early in the trading session. A more disciplined approach: Tier 1 Entry: $155–$160 Initial position after a pullback. Tier 2 Entry: $145–$150 Add if broader market weakness creates an opportunity. Full Position: ~$135 Only if the long-term thesis remains intact. Trim Zone: $200–$220 Take partial profits if valuation outruns earnings upgrades. Existing holders likely do not need to sell here. This move reflects fundamental improvement, not speculative momentum. THE CHEAP INVESTOR SCORECARD Track these eight indicators every quarter. Backlog Conversion: Is the $553B backlog translating into revenue? OCI Growth: Does IaaS remain above 40–50% growth? Revenue Path to $90B: Quarterly run-rate must reach ~$21B. CapEx Efficiency: Revenue per dollar of infrastructure investment. Gross Margins: Should expand as OCI scales. Nvidia Partnership: GPU supply stability is critical. Hyperscaler Competition: Watch AWS/Azure pricing moves. Balance Sheet Leverage: Debt levels vs. CapEx commitments. Bottom Line If Oracle converts its $553 billion backlog at the pace implied by $90 billion FY2027 revenue guidance, the stock at $165 may still represent a meaningful discount to intrinsic value. But the thesis depends on execution. If sovereign AI contracts stall or hyperscalers aggressively defend market share, Oracle could easily revisit the $130–$140 range. For now, one thing is clear. The SaaSpocalypse narrative is dead. Oracle buried it with one earnings report. What replaces it is a much more interesting story: Oracle as a global AI infrastructure provider. But narratives require confirmation. Watch the data. Don't chase the gap. Let the trade come to you. That's how the bargain hunter wins. Disclaimer: This editorial is for informational purposes only and should not be considered investment advice. Always conduct independent research before making financial decisions. IMPORTANT NOTICE AND DISCLAIMER Investing Media Solutions, LLC ("IMS"), the owner of this website (the "Website"), cannot guarantee the accuracy or completeness of the information contained in any article, email, newsletter, or other publication posted on or viewed in connection with this website (the "Publications"). The author or authors of those Publications are solely responsible for their contents. 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