Oracle Corp. (NYSE: ORCL) CEO Clay Magouyrk highlighted the increasing longevity and value of AI hardware during the company’s fiscal 2027 first-quarter earnings call. Magouyrk stated that GPU longevity and value continue to impress the company. He noted that all GPU capacity coming up for renewal in the quarter was either renewed or resold at a 20% premium to previous contracts, with the majority of these GPUs being at least four years old.
Magouyrk emphasized the long useful life of the AI capacity Oracle deploys, stating, "We see a long useful life with increasing value for the AI capacity we’re deploying." During the quarter, Oracle delivered 850 megawatts of AI capacity containing more than 300,000 GPUs. This represented 73% of the total capacity delivered throughout the prior fiscal year and was nearly three times the figure delivered in the previous quarter.
Oracle also reported that GPU utilization remained extremely high at 97.9%. The company closed more than $30 billion in additional AI contracts during the quarter without requiring additional capital. These comments come as Nvidia CEO Jensen Huang has previously argued that AI computing is a productive, revenue-generating asset. Huang stated on social media that Nvidia compute is "fungible, durable and highly rentable" and noted that older hardware, such as the A100 GPUs, remains mission-capable for years.
Oracle reported quarterly earnings of $1.92 per share, which topped the analyst consensus estimate of $1.74. Quarterly revenue came in at $19.35 billion, ahead of the Street estimate of $19.14 billion and up from $14.93 billion in the year-ago quarter. For the second quarter, Oracle expects revenue growth of 30% to 34% and cloud revenue growth of 65% to 71%.
