Oracle Corporation (ORCL.US) saw a 359% year-on-year increase in its Hong Kong stock AI cloud services and enterprise AI value reassessment.

Global enterprise software giant Oracle Corporation (ORCL.US) has recently released an impressive financial report, showing strong growth momentum in its cloud infrastructure and enterprise AI business. The report reveals that Oracle Corporation's cloud revenue reached $7.2 billion, an increase of 27% year-on-year, and remaining performance obligations (RPO) surged by 359% year-on-year to $455 billion. Oracle Corporation CEO Safra Catz stated in the earnings conference call, "The inference market is much larger than the training market," providing important guidance for the development prospects of the enterprise AI market. Opportunities for China in the Global AI Wave China has the most complete industrial system and richest application scenarios globally, providing a unique soil for the landing of AI technology. According to the latest market research, the market for enterprise-scale large AI application solutions in China is growing rapidly, with the scale reaching 38.6 billion yuan by 2024 and expected to reach 239.4 billion yuan by 2029, with a compound annual growth rate of 44%. Currently, industries from finance, manufacturing to healthcare, and retail are all accelerating their digital transformation processes. Policy support is also increasing, with the issuance of a series of policies such as "Opinions on Deepening the Implementation of the 'AI+' Action," creating a favorable environment for the development of the AI industry. Against this backdrop, cloud infrastructure providers and enterprise-level AI solution providers are facing unprecedented development opportunities. Oracle Corporation's Financial Report Reveals Industry Trends Oracle Corporation's latest performance provides important reference for the entire AI cloud service industry. Its cloud infrastructure revenue reached $3.3 billion, growing by 54% on top of the 46% growth in the first quarter of last year. More impressively, OCI (Oracle Corporation Cloud Infrastructure)'s consumption revenue grew by 57%. The company's management revealed in the financial report that it has signed cloud contracts with key companies in the artificial intelligence field such as OpenAI, xAI, Meta, and NVIDIA. These collaborations indicate that the demand for AI training and inference is rapidly growing, and the demand for cloud infrastructure will continue to be strong. Oracle Corporation expects its cloud infrastructure business to grow by 77% to $18 billion this fiscal year, and further increase to $144 billion in the next four years. This forecast demonstrates the management's strong confidence in the prospects of the cloud services market driven by AI. Cloud Service Providers Benefit from Industry Growth With the deepening of AI applications, cloud infrastructure, as the "power grid of the AI era," is becoming increasingly important. Domestic cloud service providers are actively adjusting their business structures to increase the proportion of AI-related services. Taking KINGSOFT CLOUD (03896) as an example, its revenue reached 1.89 billion yuan in the third quarter of 2024, a year-on-year increase of 16%. Despite an expansion in losses during the period, this was mainly due to long-term asset impairment. Its artificial intelligence business continued to expand to 320 million yuan, accounting for approximately 31% of public cloud revenue, showing a good trend of business structure adjustment. Analysis institutions remain optimistic about the prospects of the cloud service industry. CICC recently raised its target price for KINGSOFT CLOUD, believing that its growth and profit prospects are more optimistic. With the acceleration of enterprises moving to the cloud and the growing demand for AI applications, cloud service providers are expected to continue benefiting from the industry's dividends. Reevaluation of the Value of Enterprise-level AI In the field of enterprise-level AI, companies that have long focused on this track are showing increasingly apparent competitive advantages. For example, FOURTH PARADIGM (06682), a AI enterprise established nearly a decade ago, has been focusing on enterprise-level AI solutions since its inception, demonstrating strong strategic foresight. In the first half of 2025, FOURTH PARADIGM's total revenue reached 2.626 billion yuan, a year-on-year growth of 40.7%. More impressively, its adjusted net loss attributable to owners of the parent narrowed significantly by 71.2% year-on-year to 43.7 million yuan, demonstrating a remarkable improvement in profitability. The company's independently developed "Prophet AI Platform" performed particularly well, with revenue growing by 71.9% year-on-year to 2.149 billion yuan, accounting for 81.8% of the company's total revenue. This platform aims to lower the threshold for AI applications and enhance the innovative application of AI in various fields, and has already helped 7,000 customers land in 10,000 scenarios. Despite the impressive performance, FOURTH PARADIGM's valuation remains relatively low. Research by China Securities Co., Ltd. shows that FOURTH PARADIGM's PS estimates for 2023-2025 are 5.3x, 4.2x, and 3.4x respectively, significantly lower than the levels of comparable overseas companies. This undervaluation has attracted attention from investment institutions. BOCOM INTL significantly raised its target price for FOURTH PARADIGM from HK$64 to HK$81; Daiwa Securities reiterated a "buy" rating and raised its target price from HK$58 to HK$74; Huatai also raised its target price to HK$77.89. Landing Capability as the Core Competitiveness In the process of AI technology moving from the laboratory to industry applications, landing capability has become a key indicator of measuring enterprise value. China's rich industrial scenarios provide unique advantages for AI enterprises. Practically speaking, companies that can delve into specific industries, understand industry pain points, and provide complete solutions are gaining more and more recognition from customers. In fields such as banking, insurance, government affairs, energy, smart manufacturing, retail, healthcare, etc., AI applications are moving from pilot projects to large-scale deployment. This industrialization capability is not only reflected in the technical aspects but also includes the accumulation of industry knowledge, understanding of customer needs, and the ability to provide ongoing services. These elements constitute the core competitiveness of AI enterprises and the guarantee of their long-term value. With the improvement in the global AI industry, Chinese companies are uniquely positioned to seize development opportunities with their rich application scenarios and rapid industrialization capability. As cloud infrastructure serves as the backbone of AI technology and enterprise-level AI serves as the application of the technology, both will play important roles in the wave of digital transformation. Market participants need to focus not only on short-term performance but also on long-term industrial landing capabilities and valuation rationality. With the continuous maturity of AI technology and the deepening of applications, companies that can truly solve industrial pain points and create real value are poised to stand out in this wave.