Oracle $ORCL just released its Q3 earnings report, surging +8.5% after hours. In early March, after noticing the domestic emphasis on the 15th Five-Year Plan's focus on electricity and energy collaboration, I became more deeply aware of the importance of AI infrastructure.

That is, the "water seller" sector of AI infrastructure and energy.
As the leader in data centers, Oracle's earnings report tonight sent three extremely clear Davis double-click signals to Wall Street: 1. Successful cloud infrastructure transformation, with the core business shifting to AI cloud infrastructure; 2. Downsizing to reduce costs and improve efficiency, lowering R&D personnel costs, and increasing profit margin expansion expectations; 3. Aggressive capital expansion, with a 50 billion yuan financing plan quickly completed with 30 billion yuan.
The layoffs on the 6th seem to me like a signal, because just a few days ago, $XYZ significantly boosted profit expectations due to layoffs, proving that Wall Street always pays for "above-expected future profits." This earnings report further demonstrates $ORCL 's ability to transform into an AI infrastructure company selling water and shovels.
Borrowing the chart from group member @0xHogen, in fact, Oracle has basically priced in all negative factors over the past few months as software stocks have sharply rebounded.