Which GPU and Power Infrastructure Suppliers Capture the Most from Oracle's $39B Capex Surge?
Oracle spent $20.5 billion on capital expenditure in just the first half of FY2026 (June–November 2025), putting it on pace to exceed $40 billion for the full fiscal year — nearly double the $21.2 billion deployed in FY2025 and six times the $6.9 billion spent in FY2024. This infrastructure buildout, driven by surging demand for Oracle Cloud Infrastructure (OCI) and AI training capacity, is creating a massive revenue tailwind for a select group of GPU, networking, and power infrastructure suppliers.
The Scale of Oracle's Buildout
Oracle's capex intensity has reached extraordinary levels. The company's capex-to-sales ratio now stands at 58%, up from roughly 13% just two years ago. Net property, plant, and equipment surged from $21.5 billion in May 2024 to $67.9 billion by November 2025 — a $46.4 billion increase in 18 months. To put this in perspective, Oracle added more physical infrastructure in the last six quarters than it had accumulated in its entire prior history.
The acceleration is stark on a quarterly basis:
| Quarter (Period End) | Capex | QoQ Change |
|---|---|---|
| FY2025 Q1 (Aug 2024) | $2.3B | — |
| FY2025 Q2 (Nov 2024) | $4.0B | +72% |
| FY2025 Q3 (Feb 2025) | $5.9B | +48% |
| FY2025 Q4 (May 2025) | $9.1B | +55% |
| FY2026 Q1 (Aug 2025) | $8.5B | -7% |
| FY2026 Q2 (Nov 2025) | $12.0B | +42% |
The most recent quarter alone — $12 billion — exceeds Oracle's entire FY2024 capex budget.
Who Captures the Spend?
NVIDIA (NVDA): The Dominant GPU Supplier
NVIDIA is the single largest beneficiary. Oracle's cloud GPU clusters rely on NVIDIA's Hopper and Blackwell architectures, and GPU procurement likely represents 50–60% of Oracle's total data center capex. NVIDIA's Data Center segment generated $68.1 billion in revenue in Q4 FY2026 (ending January 2026), up 93% year-over-year, with hyperscaler orders from Oracle, Microsoft, and others driving the acceleration. NVIDIA's gross margins remain above 75%, meaning each dollar of Oracle GPU spend translates to roughly $0.75 of gross profit for NVIDIA. With a market cap of $4.5 trillion and a forward P/E of 22x, NVIDIA's valuation already reflects strong demand — but Oracle's capex trajectory suggests the growth runway extends further.
Broadcom (AVGO): Networking and Custom Silicon
Broadcom captures Oracle's spend through two channels: high-speed networking components (Tomahawk and Jericho switch ASICs that interconnect GPU clusters) and custom AI accelerator design. Broadcom reported $19.3 billion in Q1 FY2026 revenue (ending February 2026), up 29% year-over-year, with AI-related revenue now representing a significant share. Its gross margin of 65.6% and revenue growth trajectory (25% TTM, 62% forward consensus) reflect deepening penetration in hyperscaler infrastructure. Each new Oracle data center requires thousands of high-bandwidth network switches, making Broadcom a consistent beneficiary of the buildout.
Vertiv (VRT): Power and Cooling Infrastructure
Vertiv supplies the thermal management, power distribution, and UPS systems that every data center requires. Revenue hit $2.9 billion in Q4 2025, up 23% year-over-year, with full-year 2025 revenue of $10.2 billion representing 28% TTM growth. The company's operating margin expanded to 20.8% in Q4, demonstrating pricing power in a supply-constrained market. Vertiv's stock has returned 214% over the past year — the highest among this group — reflecting the market's recognition that AI-driven data center builds require proportionally more cooling and power infrastructure per rack than traditional deployments. Oracle's shift toward liquid-cooled GPU clusters directly benefits Vertiv's highest-margin product lines.
Quanta Services (PWR): Electrical Infrastructure and Construction
Quanta Services captures Oracle's spend at the site-level: high-voltage electrical transmission, substation construction, and data center power delivery. Revenue reached $7.8 billion in Q4 2025, up 20% year-over-year, with the stock returning 128% over the past year. Quanta's Renewable Energy segment, which includes data center electrical infrastructure, has become its fastest-growing division. Each new Oracle mega-campus requires grid interconnection, transformer installation, and power redundancy engineering — work that flows through EPC contractors like Quanta. The company's capex-to-sales ratio remains a lean 2.1%, meaning most revenue converts to cash flow.
Equinix (EQIX): Colocation and Interconnection
Equinix benefits indirectly as Oracle expands its multi-cloud and hybrid offerings that require colocation presence. Revenue was $2.4 billion in Q4 2025, up 8% year-over-year — the slowest growth in this group. Equinix's forward P/E of 60x and more modest 10% forward growth consensus suggest the market views it as a steady compounder rather than a direct AI capex beneficiary. Oracle's strategy of building owned data centers limits Equinix's capture relative to the other suppliers.
Relative Value Capture
| Supplier | TTM Rev Growth | Fwd Rev Growth | Fwd P/E | 1Y Return | Capex Exposure |
|---|---|---|---|---|---|
| NVDA | 65% | 69% | 22x | +61% | GPU compute |
| AVGO | 25% | 62% | 29x | +76% | Networking, custom silicon |
| VRT | 28% | 33% | 45x | +214% | Power, cooling |
| PWR | 20% | 18% | 44x | +128% | Electrical infra |
| EQIX | 6% | 10% | 60x | +14% | Colocation |
Investment Implications
NVIDIA captures the largest absolute dollar share of Oracle's capex but trades at the lowest forward multiple in the group (22x), suggesting the market may be underpricing sustained hyperscaler demand. Vertiv and Quanta offer leveraged exposure to the physical infrastructure layer — every GPU Oracle buys requires proportional power and cooling spend, creating a durable demand linkage. Broadcom's custom silicon pipeline and 62% forward revenue growth consensus position it as the highest-growth networking play.
The key risk is capex cyclicality: Oracle's free cash flow turned negative ($10.0 billion outflow in Q2 FY2026) as spending outpaced operating cash flow, raising questions about sustainability at current run rates.
What to Watch
- Oracle's Q3 FY2026 capex (February 2026 quarter) for evidence of further acceleration or moderation
- NVIDIA Blackwell shipment ramp — supply allocation among hyperscalers will determine relative capture
- Vertiv backlog growth as a leading indicator of physical infrastructure demand
- Oracle's remaining performance obligations (RPO) as a proxy for committed cloud contracts justifying the spend
Sources: Oracle FY2025 and FY2026 10-Q/10-K filings; NVIDIA Q4 FY2026 10-K; Broadcom Q1 FY2026 10-Q; Vertiv Q4 2025 10-K; Quanta Services Q4 2025 10-K; Equinix Q4 2025 10-K; company snapshot data as of March 2026.