Hello dear Getquin Community,

After $ORCL (+0,75%) Oracle caused quite a stir after the last quarterly figures and the market reacted extremely positively with a 40 percent increase in the share price, so much so that CEO Larry Ellison briefly became the richest person in the world overnight, I wanted to unravel the magic and find out exactly which division caused this tremor.

The answer is Cloud Infrastructure, or OCI for short. In this area, the demand for data centers for artificial intelligence has exploded, which has brought Oracle long-term orders worth 455 billion US dollars. However, it is not only Oracle that is benefiting, but also other hyperscalers, regional challengers and, above all, the so-called shovel manufacturers that provide the basic infrastructure.

I have taken the trouble to look for potential competitors and up-and-coming challengers so that you have a complete overview of this sector. I have divided the whole thing into the following segments: 🌍 Big players (hyperscalers), 💡 Hidden champions (selection by region), ⚒️ Shovel manufacturers (infrastructure suppliers) and, as always, my favorite.

If I have overlooked any important aspects or a classification was not entirely precise, I look forward to your comments and exciting additions. Together we can understand this topic even better and learn from each other.

Feel free to leave a 👍. I wish you every success with your investments 🚀

🌍 Big Player (Hyperscaler)

Amazon Web Services - $AMZN (+0,66%) (USA, Nasdaq) → World market leader with >30 % market share, huge data centers & own AI chips (Trainium, Inferentia)

Microsoft Azure - $MSFT (+0,77%) (USA, Nasdaq) → second largest provider, strong AI focus through OpenAI partnership

Google Cloud - $GOOGL (-0,71%) (USA, Nasdaq) → third largest provider, specialized in AI workloads & big data

Oracle Cloud Infrastructure (OCI) - $ORCL (+0,75%) (USA, NYSE) → Number 4 worldwide, currently fastest growth (+70-80 %), RPO USD 455 bn

Alibaba Cloud - $BABA (-3,12%) , $9988 (-3,14%) (China, NYSE/HKEX) → Market leader in Asia, complete cloud suite from IaaS to AI

Favorite: Oracle - $ORCL (+0,75%)

Oracle impresses with its cloud infrastructure OCI, which recently collected orders worth 455 billion US dollars. The moat lies in the close integration of the database business and cloud services as well as the multi-cloud partnerships with Microsoft and Google. The compounder property is the result of long-term contracts and economies of scale in data center construction.

Alternative favorite: Alibaba Cloud - $BABA (-3,12%) , $9988 (-3,14%)

Alibaba is number one in Asia and number four worldwide. The moat lies in the close integration with Alibaba's e-commerce and fintech ecosystem. The compounder property stems from the enormous growth in emerging markets and the increasing demand for cloud services in China. While the stock is valued significantly cheaper than Oracle, there are geopolitical and regulatory risks.

💡 Hidden champions (selection by region)

🇪🇺 Europe

OVHcloud - $OVH (+1,26%) PA (France) → largest European cloud provider, GDPR- and Gaia-X-focused

Scaleway - private (France, part of the Iliad Group) → Developer and AI cloud platform

T-Systems - part of $DTE (-2,41%) DE (Deutsche Telekom, Germany) → Hybrid & Sovereign Cloud for Public Sector

IONOS - $IOS (-0,27%) DE (Germany, Xetra)

Largest European web hosting and SME cloud provider. Burggraben: strong brand and high customer loyalty in the SME sector.

Aruba Cloud - private (Italy) → regionally strong in SMEs & hosting

Outscale - private (France, subsidiary of Dassault $DSY.PA) → Industrial Cloud & Simulation

Favorite: OVHcloud - $OVH (+1,26%)

Burggraben: strong position as a GDPR-compliant sovereign cloud with Gaia-X. Compounder: increasing trust from authorities and companies ensures growing recurring revenues.

🇨🇳 China

Baidu AI Cloud - part of $BIDU (+0,39%) , $9888 (+0,25%) (Nasdaq, China/USA) → AI workloads, autonomous driving, language models

JD Cloud - part of $JD (-1,58%) , $9618 (-1,66%) (Nasdaq, China/USA) → Cloud for e-commerce & retail

Kingsoft Cloud - $KC (-3,3%) , $3896 (-3,83%) (Nasdaq, China/USA) → Gaming, streaming and app cloud

China Telecom Cloud - part of $728 HK (HKEX) → Infrastructure cloud, state-supported

China Mobile Cloud - part of $941 HK (HKEX) → 5G edge cloud with telecom backbone

Favorite: Kingsoft Cloud - $KC (-3,3%) , $3896 (-3,83%)

Moat: Specializing in gaming, streaming and mobile apps with deep integrations into ecosystems. Compounder: benefits from China's growing online consumption and strong embedding in the Tencent environment.

🇯🇵 Japan

NTT Communications - part of $9432 (-0,86%) T (Tokyo) → Enterprise cloud with global network

NEC Cloud - $6701 (+0,34%) T (Tokyo) → Government & security solutions

Fujitsu Cloud K5 - $6702 (-1,23%) T (Tokyo) → Hybrid cloud for large companies

Rakuten Symphony Cloud - part of $4755 (-2,81%) T (Tokyo) → 5G & telecom cloud

IIJ Cloud - $3774 (-0,35%) T (Tokyo) → Cloud pioneer for enterprise IT

Favorite: NTT - $9432 (-0,86%)

Moat: global telecom backbone and huge enterprise customer base. Compounder: expansion of data centers in Asia and Europe with stable recurring revenues.

🇮🇳 India

Reliance Jio Cloud - part of $RELIANCE NS (NSE India) → Telecom Cloud, partnership with Azure

Tata Communications IZO - $TATACOMM NS (NSE India) → Hybrid cloud & global backbone

Infosys Cobalt - $INFY (NYSE/NSE India) → Cloud migration platform & consulting

HCLTech Cloud - $HCLTECH NS (NSE India) → AI-powered hybrid cloud

Wipro Cloud Studio - $WIPRO NS (NSE India) → MultiCloud service provider

Favorite: Tata Communications - $TATACOMM

Moat: global fiber optic network and deep networking in hybrid cloud. Compounder: growing international expansion and increasing demand for multi-cloud solutions.

🌏 Asia / Oceania

Naver Cloud - part of $035420 KQ (Korea KOSDAQ) → AI & gaming cloud

Samsung SDS Cloud - $018260 , $SMSN (+1,87%) KQ (Korea KOSDAQ) → Enterprise & IoT Cloud

KT Cloud - part of $030200 KQ (Korea KOSDAQ) → Telecom & Edge Cloud with 5G

Telstra Cloud - $TLS (+1,24%) AX (Australia) → Telecom Cloud, Asia-Pacific focus

Macquarie Telecom Cloud - $MAQ AX (Australia) → Public Sector & Compliance

Favorite: Naver Cloud - $035420

Moat: strong integration of AI and gaming in Korea. Compounder: rapid scaling due to growing demand for AI and ML applications.

🌍 Latin America

UOL Diveo (Compasso UOL) - private (Brazil) → Cloud + Managed Services

Tivit Cloud - private (Brazil) → MultiCloud for industry & banks

Locaweb Cloud - $LWSA3 SA (Brazil) → SME Hosting & Cloud

Claro Cloud - part of $AMX (+2,62%) (Mexico, NYSE/HKEX) → Telecom Cloud in Latin America

DesireCloud - private (Chile/Peru) → Local provider for companies

Favorite: Locaweb - $LWSA3

moat: Market leader for SME cloud and hosting in Brazil. Compounder: enormous scalability through the digitalization of small and medium-sized enterprises throughout Latin America.

🇨🇦 Canada

OVHcloud Canada - part of $OVH (+1,26%) PA (France) → Data centers for North America

SherWeb - private (Quebec) → Cloud and MSP services for SMEs

HostPapa - private (Canada) → SME cloud solutions

Canadian Web Hosting - private (Canada) → Cloud & hosting with a focus on data protection

Beanfield Cloud - private (Toronto) → Cloud combined with fiber optic infrastructure

Favorite: SherWeb - private

Moat: close ties to SMEs via managed services. Compounder: fast-growing cloud ecosystem for small businesses in North America, high customer loyalty.

⚒️ Blade manufacturers (infrastructure suppliers)

🖥️ Semiconductors & Chips

Nvidia - $NVDA (-0,39%) (USA, Nasdaq) → GPUs for AI training & cloud

AMD - $AMD (+1,45%) (USA, Nasdaq) → CPUs/GPUs for Data Center

Intel - $INTC (-2,45%) (USA, Nasdaq) → Server CPUs & AI accelerators (Gaudi)

TSMC - $TSM (-0,08%) (Taiwan, NYSE/TWSE) → largest chip manufacturer, produces for NVIDIA/AMD

Samsung Electronics - $SMSN (+1,87%) KQ (Korea) → Memory, foundry, GPUs/CPUs

Favorite: Nvidia - $NVDA (-0,39%)

Moat: near monopoly in high-end GPUs for AI. Compounder: Ecosystem and network effects through CUDA and developer community.

📦 Data center hardware & servers

Supermicro - $SMCI (+10,74%) (USA, Nasdaq) → GPU clusters & AI servers

Dell Technologies - $DELL (+0,33%) (USA, NYSE) → Enterprise Servers & Storage

Hewlett Packard Enterprise - $HPE (-2,27%) (USA, NYSE) → Hybrid Cloud & Edge

Inspur - private (China) → AI & Cloud Server

Lenovo - $LNVGY (-3,23%) (China/ADR) → HPC and AI servers

Favorite: Supermicro - $SMCI (+10,74%)

Moat: Specialization in GPU clusters and AI servers. Compounder: benefits from every expansion of the hyperscalers, extremely high scalability.

⚡ Memory & network chips

Micron - $MU (+7,41%) (USA, Nasdaq) → DRAM & HBM memory

SK Hynix - $HY9H (-0,33%) KQ (Korea) → Memory chips, HBM for NVIDIA

Broadcom - $AVGO (+2,84%) (USA, Nasdaq) → Network Chips & Switches

Marvell - $MRVL (-0,59%) (USA, Nasdaq) → Network & 5G chips

ASE Technology - $ASX (+1,21%) (Taiwan, NYSE) → Packaging for high-end chips

Favorite: Broadcom - $AVGO (+2,84%)

Moat: deep roots in network infrastructure of hyperscalers. Compounder: benefits from rising demand for switches and custom chips for the cloud.

🏭 Data centers / colocation

Equinix - $EQIX (+0,2%) (USA, Nasdaq) → largest colocation provider worldwide

Digital Realty - $DLR (+3,04%) (USA, NYSE) → Data centers worldwide, strong in Europe/USA

China Telecom DC - part of $728 HK (HKEX) → Data center infrastructure in China

NTT Data Centers - part of $9432 (-0,86%) T (Tokyo) → Data centers in Asia/Europe

NEXTDC - $NXT (+3,79%) AX (Australia) → Growing data centers in the APAC region

Favorite: Equinix - $EQIX (+0,2%)

Moat: global networking and extremely high switching costs for customers. Compounder: continuous expansion and cross-selling potential through platform structure.

🔋 Energy & cooling

Schneider Electric - $SU (+1,26%) PA (France, Euronext) → Power & Cooling for Data Center

ABB - $ABBN (+0,15%) (Switzerland, SIX/NYSE ADR) → Energy & Automation

Siemens Energy - $ENR (+6,34%) (Germany, Xetra) → Power Grids & Data Center Technology

Vertiv - $VRT (+2,61%) (USA, NYSE) → Cooling, Racks & UPSs

Eaton - $ETN (+2,82%) (Ireland/USA, NYSE) → Power Management

Favorite: Schneider Electric - $SU (+1,26%)

Burggraben: market-leading energy and cooling systems for data centers. Compounder: long-term growth due to increasing demand for efficient data centers.

🌐 Network & Connectivity

Cisco - $CSCO (-0,26%) (USA, Nasdaq) → Router & Network Hardware

Arista Networks - $ANET (-0,2%) (USA, NYSE) → High-speed switches for hyperscalers

Juniper Networks - Acquisition by $HPE (-2,27%) Hewlett Packard HP (USA, NYSE) → Routing & Network Security

Ciena - $CIEN (-0,71%) (USA, NYSE) → Fiber Optics & Optical Networks

Nokia - $NOK (+0%) (Finland, NYSE/Helsinki) → 5G & Core Networks

Favorite: Arista Networks - $ANET (-0,2%)

Moat: technological leadership in high-speed switches in hyperscaler data centers. Compounder: enormous growth opportunities due to exponential data traffic in AI workloads.

✨ Takeaway

The Oracle quake shows: Cloud & AI are the growth drivers of the coming years. While hyperscalers are in the spotlight, hidden champions are growing in their niches in the background and blade manufacturers are making money from every expansion of the infrastructure.

👉 Question for you: Do you prefer to focus on hyperscalers in your strategy? hyperscalersthe hidden champions or directly on the shovel manufacturers?

I look forward to your opinions!

Source: own analysis

Image - Image credit: Getty Images

Week in review 12.10.

All-time highs for S&P 500, Dow Jones, Air Products & Chemicals, American Express, Arista Networks, Bank of New York Mellon, BlackRock, Caterpillar, CAVA, Fiserv, GE Vernova, Goldman Sachs, Mastercard, Morgan Stanley, Motorola Solutions, Piper Sandler, Royal Caribbean, Uber, Unum

52-week highs for Carnival, Commerzbank, GE Aerospace, Hilton Worldwide, MicroStrategy, Norwegian Cruise, Palantir, Ralph Lauren, Robinhood Markets, Sea Ltd. , Shake Shack, Tangier, Teledyne

Tesla Cybercab / Robotaxi planned from 2026 for under 30,000$. In addition, an autonomous bus with 20 seats was presented, share falls -8.1%, market is disappointed, -19% 1-year performance

Nvidia partner Hon Hai increases capacity to meet "crazy" AI demand, Nvidia shares +8.3% this week, +176% 1-year performance

AMD unveils MI325X AI accelerator to compete with Nvidia's H200, customers include Google, Microsoft, OpenAI, Dell, Oracle, Meta, Hewlett Packard Enterprise, Supermicro, Lenovo and Databricks, AMD launches EPYC 5th Gen Datacenter CPU to compete with Intel's Xeon, AMD currently has 34% market share in Datacenter CPUs, MI350 coming in 2025 to compete with Nvidia's Blackwell, AMD stock drops -4%, apparently sell the news event, +45% 1-year performance

92% of desktop processor sales at major German online retailer Mindfactory were from AMD last week, Intel only at 8% share and -36% 1-year performance

TSMC with good quarterly figures, share price rises slightly, +97% 1-year performance

JPMorgan with good quarterly figures, share +5.1%, +48% 1-year performance

Wells Fargo with good quarterly figures, share +6.5%, +49% 1-year performance

PepsiCo and Samsung with poor quarterly figures, shares fall slightly

Amazon Pharmacy announces same-day delivery of prescription drugs in 20 more US states and expands its service to almost half of the states in 2025, +43% % 1-year performance

Jefferies says Apple's hopes for an AI phone are overdone and high expectations are premature, Hold rating, +26% 1-year performance

The situation is similar at Microsoft after Oppenheimer downgraded its rating from "Outperform" to "Perform", it was the second such downgrade by analysts in recent weeks, AI sales are overestimated and shares have underperformed since July due to "AI fatigue", plus losses at OpenAI, +26% 1-year performance

Two Google scientists from the subsidiary DeepMind receive the Nobel Prize in Chemistry, they developed the AI model "AlphaFold2", which can be used to predict the structures of all 200 million known proteins, the AI is used in 190 countries, for example in the clarification of antibiotic resistance or the use of enzymes to break down plastics, Alphabet shareholders like this, +12% 1-year performance

Inperial Brands increases dividend, now pays out quarterly and buys back shares, share price rises 5%, +36% 1-year performance

FTX - customers will soon get their balances paid out after the crypto exchange went bankrupt in 2022 and the management was imprisoned

Shortseller Hindenburg Research with allegations of fraud and safety concerns for children at gaming service Roblox, share price falls -6%, even -70% since November 2021

After two very positive weeks, China stocks fall like a flash in the pan as the market expected more stimulus from the Chinese dictator. Dictator, Hang Seng with worst day since the 2008 financial crisis, this week

China strengthens real estate sector and signals more spending ahead, Finance Minister announces measures to support real estate sector today and government would now have more room to borrow and increase deficit, China also announces issuance of special government bonds today to bolster capitalization of its largest state-owned banks, Printer is coming

Fitch downgrades France's credit rating to negative due to higher deficits, government debt expected to rise to 118.5% of GDP by 2028

FTSE Russell: Greek equities on track for upgrade to developed markets, FTSE Russell to provide update as part of March 2025 review, Greek equity index up 53% since start of 2023

Porsche sells 7% fewer cars due to China slump by -29%, -5% North America but +7% Germany & Europe, -21% % 1-year performance

Deutsche Telekom increases dividend and launches share buyback program for € 2 bn, highest share price in 23 years, +33% 1-year performance

Commerzbank reaches highest share price since the euro crisis in 2011, +61% 1-year performance

Bayer with new lawsuit in the USA over PCBs, share price -7%, -41% 1-year performance

German industrial order intake fell unexpectedly sharply by 5.8% in August compared to the previous month

E.on CEO expects energy prices to rise in the long term thanks to higher taxes & levies and the world's stupidest energy policy

The Ampel expects the economy to shrink for the second year in a row, revising its GDP forecast for 2024 from +0.3% to -0.2%, only the second consecutive year of shrinking GDP since the fall of communism in 1990

After the pension insurance, the German long-term care insurance is also bankrupt, as recipients of citizens' benefits are not paying in and society is ageing, Lauterbach therefore wants to increase the monthly contribution for long-term care for all workers, so soon less net from gross again

" If you want to read a review like this every week, leave a like and subscribe.

$NVDA (-0,39%)
$AMD (+1,45%)
$TSLA (-0,14%)
$CBR
$INTC (-2,45%)
$2330
$JPM (+1,13%)
$WFC (-0,56%)
$PEP (-0,25%)
$AMZN (+0,66%)
$GOOGL (-0,71%)
$GOOGL (-0,71%)
$AAPL (-0,88%)
$MSFT (+0,77%)
$IMB (+1,4%)
$CNUA (-0,62%)
$941
$9988 (-3,14%)
$700 (-2,09%)
$1211 (-1,08%)
$P911 (-0,82%)
$PAH3 (-1,29%)
$DTE (-2,41%)
$BAYN (+5,33%)
$EOAN (+0,99%)
$PLTR (-3,21%)
$RBLX
$BLK

Subsequent purchase of dividend portfolio

Savings plan until approx. 100 units are reached

Not much substance besides high dividends, growth moderate, share price return declining for years - "ma gucken!"

Subsequent purchase

A lot of value and Yanks can't spoil the price for me

Consorsbank and Smartbroker can no longer be bought :(((((( Good thing I still have TR