- $NVDA sells GPUs to $ORCL. Oracle uses to power its data centers
- Oracle builds cloud on those GPUs
- Nvidia rents compute back via signed deals from Oracle
Nvidia gets recurring revenue from hardware sales and cloud services without owning all the data centers. Oracle turns capex (buying GPUs) into opex revenue by renting compute to Nvidia, OpenAI, and others.
More AI Stocks Watchlist: $MRVL $AVGO $NBIS $AIFU $IREN $CRWV
Of course this is going to end in a bubble… the only questions are 1) how large does it get 2) what causes it to pop and 3) how much money can you make from it along the way.
— Andrew Freedman, CFA 🦅 (@HedgeyeComm) September 11, 2025
Imaginary conversation between oAI and ORCL: "Hey can you send me fake $300bn? My stock will pop and you are private your investors know its BS anyway. Plus you can tell Trump about your investment. In a few years everybody will forget, we will be cashed out, no one can sue"
— Marko Kolanovic (@markoinny) September 11, 2025
h/t ramdomwalk