Oracle: Fewer Datacenter Permits Could Be A Good Thing

Oracle remains a strong buy as its AI data centers are profitable, though returns are modest after funding costs. ORCL trades at a suppressed 14x forward P/E, reflecting market skepticism over heavy AI CapEx and low ROA, but EPS growth potential is underappreciated. Regulatory or supply constraints could enhance the value of existing data centers, while Oracle's robust software portfolio provides a margin cushion Neoclouds lack.