AI trade faces test with next week's Oracle earnings

The coming week could be pivotal for Oracle and the AI complex. The day after OpenAI Foundation's presentation at the Goldman Sachs Communications & Technology conference, Oracle reports earnings amid enormous enthusiasm for its role in the AI infrastructure buildout precisely at a time when questions surrounding OpenAI's enormous infrastructure commitments, to Oracle particularly, are becoming increasingly important.Wall Street is decidedly optimistic: 42 Buy ratings, eight Holds and just one Sell. Expectations call for roughly 28% constant-currency revenue growth, versus 11% a year ago, while adjusted EPS may rise closer to 18.5%. Revenues are growing faster than earnings. Contrast that with some hardware suppliers, like Micron, whose revenues are expected to finish their fiscal year ending 8/31/26 246% higher, while EPS is expected to rise more than 840% over the same period. One is capitalizing on outsized demand and pricing power - the other is footing the bill.Cloud infrastructure remains the centerpiece of the bull case. Oracle's OCI business has been growing explosively, and management is guiding to 27%-29% overall revenue growth this quarter. Amazon, Alphabet and Meta ...