Zaid Admani

This inflation report is unlikely to influence the Federal Reserve's decision on interest rates.

The Fed is meeting next week and the market is pricing in a 99% chance

interest rates stay as is.

And with the potential resurgence of inflation, the Fed might have to wait even longer to cut interest rates.

We'll see what Fed Chair Jerome Powell has to say about it next week.

Let's shift gears and talk about Oracle.

They reported earnings

last night and the numbers came in strong.

Total revenues grew 22% to $17.2 billion, beating Wall Street estimates.

But the real headline is the cloud infrastructure business, which is basically Oracle's data center and AI computing segment.

Revenues there surged 84% to $4.9 billion, accelerating from the 68% growth last quarter and beating Wall Street expectations.

And it's Oracle's outlook that got investors really excited.

Oracle raised its fiscal 2027 revenue forecast to $90 billion, well above the $86.6 billion that analysts were expecting.

Management said that demand for AI cloud computing continues to outpace supply and that some of their biggest AI customers have recently strengthened their financial positions, which just means that more money is coming Oracle's way.

So I got to say, this was a clutch performance for Oracle.

The stock had lost more than half its value since its peak back in September due to cost concerns tied to its AI data center build out.

I think investors had become skeptical about Oracle's ability to afford all the AI building or if the AI demand would even materialize.

But I think the acceleration in cloud revenue growth should put some of those concerns to rest.

Top of that, Oracle is taking steps to manage costs.

The company spent $18.6 billion in capital expenditure this quarter, which was higher than expected.