Seeking Alpha’s roundup of statements, announcements, and remarks that could impact the technology sector.
- Thomas Bravo co-founder Orlando Bravo said the current bubble in AI company valuations differs from the dot-com bubble in that today’s companies are being financed by those with strong balance sheets.
“Now you have some really big companies and some big balance sheets and healthy balance sheets financing this activity, which is different than what happened roughly 25 years ago,” Bravo said during a CNBC interview on Tuesday.
Bravo also said his firm sees AI boosting the software sector.
“With AI, you have so much more to sell them, agentic solutions, an easier way for the customer to engage with your product,” Bravo said, adding, “that is a big, big, new, exciting tailwind for the industry.”
- Oracle (NYSE:ORCL) is reportedly seeing lower-than-expected profits from its cloud business.
The tech heavyweight reportedly saw a gross profit of $125 million on approximately $900 million in revenue from the rental of servers powered by Nvidia (NASDAQ:NVDA) chips in the three-month period ended in August, according to Bloomberg, which cited The Information.
- Altimeter Capital founder Brad Gerstner said investors need to keep in mind that Nvidia (NASDAQ:NVDA) and Advanced Micro Devices’s (NASDAQ:AMD) recently announced deals with OpenAI (OPENAI) are just announcements and not actual deployments.
“Now we will see what gets delivered,” Gerstner told CNBC in an interview late Monday. “Ultimately, the best chips will win.”
Gerstner added that the deals provide “more evidence that the world will remain compute-constrained despite best efforts to bring massive supply online.”