Rishi Jaluria on Under-the-Radar AI Investments Beyond Oracle and Microsoft

Oracle's AI Growth Challenges

• 💡 Oracle's long-term guidance for its cloud business (OCI) is questioned due to potential limitations in power supply for data centers.
• ⚠️ The analyst highlights that Oracle may need to make significant power investments to meet its 2030 revenue targets.
• 📊 A concern is raised about the quality of revenue growth, particularly regarding the margins on OCI, which could be negative for certain training use cases.
• 🔑 Oracle's current benefit from allocating excess GPU capacity might diminish as competitors like Microsoft aim to bring AI infrastructure in-house.

Microsoft's Superior AI Strategy

• 🚀 Microsoft is identified as the preferred way to play AI due to its monetization across the entire tech stack, from Azure to applications like Microsoft 365 Copilot.
• 💡 Microsoft's AI revenue is considered higher quality because it's integrated into various layers, not just providing raw GPU capacity.
• 🛠️ The company is seen as actively innovating in AI rather than just supplying infrastructure.

Under-the-Radar AI Investment Opportunities

• 🌱 MongoDB is recommended for developing new generative AI applications, especially those handling unstructured data.
• 🎯 HubSpot is highlighted for its innovative AI roadmap, positioning it well to capitalize on AI's impact on sales and marketing.
• 📈 Intuit presents an opportunity with generative AI to enhance offerings like TurboTax and QuickBooks, potentially through virtual agents for tax and bookkeeping tasks.