Digging into the bottlenecks of AI

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 11 June 2026

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

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Summary

Oracle’s earnings results made one thing abundantly clear, the spending rate for data centers and AI infrastructure isn’t slowing down any time soon. While the market didn’t respond too favorably to the announcement it was increasing its capital spending for the upcoming fiscal year, there is likely a long list of companies that will benefit. We dig into some of the bottlenecks and pinch points of this massive buildout. Plus, why do international stocks trade at such a discount to American ones? Tyler Crowe, Matt Frankel, and Jon Quast discuss: - Oracle’s earnings results and capital spending plans - Is Oracle’s backlog and spending plans connected to the Anthropic and OpenAI IPOs? -Identifying some pinch points of AI buildout - Question: Why do European stocks trade at a discount to the US market Companies discussed: ORCL, TSLA, PDFS, LRCX, KLAC, ASML, PLD, VWDRY, GEV, STLA, RACE, CNH, PHG, NBCLF, AJINF, VYMI, BRK Host: Tyler Crowe Guests: Matt Frankel, Jon Quast Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Diving deep into the AI supply chain today on Motley Fool Hidden Gems Investing.
0:09.7	Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined
0:13.6	by longtime full contributors, John Quas, Matt Frankel. So we wanted to start the discussion today
0:19.2	about AI spending, basically, and some of the
0:22.8	kind of nooks and crannies that a lot of that is falling into.
0:25.8	And to do that, we want to start with the big news event of the day, and that was Oracle's
0:30.9	earnings.
0:31.9	They reported earnings earlier today, and the stock is down.
0:34.7	Pre-market was down about 11% right around the time that we are taping.
0:38.2	And, you know, the numbers were pretty good, at least from a quarterly earnings perspective.
0:41.9	But I think the biggest reason we saw this massive decline in the shares was because
0:48.0	CapEx spending is going way, way up.
0:50.7	They spent much more than they had expected.
0:52.8	They were expecting $50 billion for this
0:54.9	entire fiscal 2026, but they ended spending 55. And their plan for 2027 was to add more to that,
1:04.4	to do about $70 billion in capital spending. Now, there's a lot of reasons for that.
1:09.6	The remaining performance obligations,
1:11.6	basically, however, hyperscalers are spending is gone way up. And we'll get into that.
1:17.4	So, guys, one of the things I think about with Oracle compared to, like, the other hyperscalers
1:22.0	is this is not like their bread and butter business. This is something they've been really
1:26.0	getting into. And is this, seeing these kind of large, large numbers, is this a, like a risky approach?
1:32.4	Is this like the way Oracle should be attacking this?
	...

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