FULL BREAKDOWN: Why Oracle's Stock is Exploding

The gist

1. Oracle's infrastructure business grew 84% this quarter, driven by deals with OpenAI and Meta, who lack their own cloud platforms.
2. The $553 billion remaining performance obligations backlog signals strong demand, with 90% of deliveries on or ahead of schedule.
3. Token consumption per user is growing exponentially, which justifies Oracle's $50 billion annual capex spend on GPU infrastructure.
4. Gross margins improved to 32% despite heavy spending, showing the infrastructure business is profitable from the start.