Oracle Has Fantastic News for Nvidia Stock Investors

Oracle's fiscal 2026 data center operations ran at a 97.5% GPU utilization rate, signaling sustained demand for Nvidia's AI chips. The hyperscaler reported the metric alongside plans to boost capital expenditures to $90-95 billion in fiscal 2027, up from $56 billion in fiscal 2026—a near-doubling that directly benefits NVDA's dominant position in AI accelerators.

The utilization figure suggests Oracle is running its existing GPU infrastructure near capacity, creating immediate need for additional hardware. Oracle's fiscal year ends in May, meaning the planned capex surge would begin mid-2025 and run through mid-2027. Nvidia currently holds over 80% market share in data center AI chips, positioning the company to capture the majority of Oracle's infrastructure buildout.

The spending jump from $56 billion to a midpoint of $92.5 billion represents 65% growth year-over-year. Oracle's commitment provides visibility into enterprise AI infrastructure spending beyond near-term volatility, a key concern for NVDA bulls after recent export restriction headlines and DeepSeek-related selloffs.