Good morning! Let's talk about Oracle's financial report. As the global leader in computing power (ranked in the top five for US computing power leasing), its financial report can reveal the direction of computing power development.

Key points from the financial report: Remaining fulfillment orders amount to $638 billion, roughly 4.5 trillion yuan, a year-on-year increase of 363%. 12% will be realized within one year, and 34% within 1-3 years (due to long-term contracts). AI infrastructure orders are concentrated and have landed, with signed contracts worth $7 billion. Customers supply their own servers, and profit margins are comparable to traditional orders, indicating a booming demand for computing power.
Computing power is scarce, with GPU inference utilization reaching 97.5%, nearly at full capacity. Computing power can be seamlessly renewed or subleased. Large customer expansion is going smoothly; 300 companies went live this quarter, with four clients each signing $8 billion orders, and multiple large government and enterprise projects secured. The US market's demand for computing power is strong.
Capital investment is substantial, with $48 billion planned for 2026, and $70 billion in spending in 2027 plus $20-25 billion in customer prepayments, expected to double later. Leading companies' heavy investments indicate that the computing power industry has not peaked.
Overseas, SK Hynix's wafer capacity will double in the next few years. Although domestic companies like DeepSeek have seen token and stock price declines, data center demand is actually increasing (similar to bread prices dropping but flour demand rising due to higher bread sales).
Although the current market faces factors like inflation, interest rate hikes, the World Cup curse, and gaps, the A-share market has not reached its historical top. Market bubbles have dissipated, and valuations are at valuable levels. Investors should remain rational and avoid panic selling.