Oracle’s projection of swift growth in its cloud infrastructure has sparked a strong rally among leading AI technology companies. The firm expects cloud revenues to reach $114 billion by fiscal 2029, driven by rising demand for AI computing and requiring substantial investment in new data centres.
UBS analyst Karl Keirstead said, “The guide for a 14x increase in Oracle’s cloud infra segment over five years, mostly from GPU cloud demand, and the guide for capex of $35 billion in FY26 is bullish Nvidia, other AI hardware suppliers and the eco-system of partners building and financing Oracle’s GPU data centers.”
Oracle’s shares jumped 36%, while Nvidia—whose GPUs represent about 70% of AI data centre costs—rose 4%. Chipmaker TSMC also gained over 4%, following a 34% sales increase in August.
Broadcom, providing networking tech for Nvidia chips and custom AI solutions for Google, surged 10%. AMD saw a 2% rise, and memory producer Micron increased 4%. Server makers Super Micro and Dell rose 2% each.
Oracle CFO Safra Catz emphasised capital spending on revenue-generating infrastructure, stating, “The vast majority of our CapEx investments are for revenue-generating equipment that is going into the data centers.”
CoreWeave, a neo-cloud competitor focusing on AI services, soared 17%, benefiting from high demand for AI compute.