September 11, 2025

finance  
OpenAI Cloud Demand, Oracle Nears $1T, Microsoft & Google Compete

Oracle's stock has surged to record highs, nearing a trillion-dollar valuation, fueled by a massive demand for its AI cloud services. The company announced four multi-billion-dollar AI cloud contracts, with CEO Safra Catz anticipating more significant deals that could push remaining performance obligations past $500 billion. This demand stems from major AI players like OpenAI and xAI securing substantial computing power. Oracle's cloud infrastructure (OCI) is increasingly competing with established providers such as Microsoft, Amazon Web Services, and Google Cloud, and is involved in large-scale AI projects like OpenAI's Stargate. In the hardware sector, Broadcom is making significant inroads with custom AI chips, securing over $10 billion in AI rack orders, likely from OpenAI. This development has impacted AMD's market position, with Broadcom's custom silicon gaining traction for inference workloads. Broadcom's AI semiconductor sales reached $5.2 billion in Q3 fiscal 2025, and the company is seen as a key beneficiary of Oracle's AI forecast. Meanwhile, NVIDIA remains a top pick for generative AI investments, according to KeyBanc. Rezolve Ai is also highlighting its valuation compared to peers like Anthropic and Sierra AI, noting its partnerships with Microsoft and Google and expecting to exceed $100 million in ARR by the end of 2025. Dell is also positioned for potential AI-related growth, particularly with its AI servers.

Key Takeaways

  • Oracle's stock has surged to record highs, nearing a $1 trillion valuation due to strong demand for its AI cloud services.
  • Oracle has secured four multi-billion-dollar AI cloud contracts and expects remaining performance obligations to exceed $500 billion.
  • Companies like OpenAI and xAI are aggressively acquiring computing power, driving demand for AI cloud infrastructure.
  • Oracle Cloud Infrastructure (OCI) is intensifying competition with Microsoft, Amazon Web Services, and Google Cloud.
  • Broadcom has secured over $10 billion in AI rack orders, likely from OpenAI, for its custom AI chips.
  • Broadcom's custom AI silicon is gaining traction for inference workloads, potentially impacting AMD's market position.
  • Broadcom's AI semiconductor sales reached $5.2 billion in Q3 fiscal 2025, with the company benefiting from Oracle's AI forecast.
  • NVIDIA is reiterated as a top pick for generative AI investments by KeyBanc.
  • Rezolve Ai, which partners with Microsoft and Google, expects to exceed $100 million in ARR by the end of 2025.
  • Dell is anticipated to experience AI-related growth, especially with its AI servers.

Oracle stock soars on massive AI cloud demand

Oracle shares surged to a record high, nearing a trillion-dollar valuation, as the company announced four multi-billion-dollar AI cloud contracts. This surge reflects a wider industry trend of companies like OpenAI and xAI aggressively securing computing power for AI development. Oracle co-founder Larry Ellison's net worth also significantly increased, bringing him closer to becoming the world's richest person. CEO Safra Catz expects more multi-billion-dollar deals, projecting remaining performance obligations to exceed half a trillion dollars. Oracle's cloud infrastructure (OCI) is now competing with major players like Microsoft, Amazon Web Services, and Google Cloud.

Oracle stock surges on AI cloud gains, Ellison nears richest title

Oracle's stock price jumped nearly 43% to a new record high, positioning the company for a trillion-dollar valuation due to its growing role as an AI cloud provider. The company secured four multi-billion-dollar contracts, driven by the high demand for computing power in the AI race by companies like OpenAI and xAI. This stock surge significantly boosted the net worth of co-founder Larry Ellison, placing him close to Elon Musk in the competition for the world's richest person. Oracle CEO Safra Catz anticipates more major contracts, with remaining performance obligations likely to surpass $500 billion.

Oracle shares jump on strong AI cloud demand

Oracle's stock price soared over 40% to a record high on Wednesday, driven by a significant increase in demand for its AI cloud services. This surge could push Oracle's market value close to $950 billion, nearing the trillion-dollar club. The company reported four multi-billion-dollar contracts in the last quarter, showing strong customer interest. Oracle has also partnered with Amazon, Alphabet, and Microsoft to offer its Oracle Cloud Infrastructure (OCI) alongside their services, with revenue from these partnerships growing significantly. The company's involvement in projects like SoftBank and OpenAI's Stargate further boosts its position in large-scale AI infrastructure.

Oracle stock jumps on AI cloud demand surge

Oracle shares rose approximately 40% on Wednesday due to a surge in demand for its cloud services from AI companies, highlighting its growing importance in artificial intelligence. This demand reflects a broader industry trend where companies like OpenAI and xAI are investing heavily in computing capacity for AI development. The stock's significant jump brings Oracle closer to a $1 trillion market valuation. CEO Safra Catz expects more multi-billion-dollar customer deals, potentially exceeding half a trillion dollars in remaining performance obligations. Oracle's cloud infrastructure is gaining traction against established providers like Microsoft, Amazon Web Services, and Google Cloud.

Broadcom chips challenge AMD's AI market position

Broadcom's strong quarterly results and a $10 billion order for custom AI chips, likely from OpenAI, caused AMD's stock to drop. Broadcom's shares rose nearly 11%, while AMD's fell over 6%. This signals a potential shift in the AI hardware market towards custom silicon, or ASICs, for inference workloads, which are more efficient than GPUs. While AMD has seen growth in its data center revenue, its performance fell short of expectations, and its guidance indicates a slowdown. Broadcom reported significant AI revenue growth, and its custom chip architecture (XPUs) is gaining traction with hyperscale customers, potentially impacting AMD's future growth.

Broadcom and Meta Platforms lead AI growth

Broadcom and Meta Platforms are highlighted as top AI growth stocks for September. Broadcom is a key player in AI infrastructure, providing custom AI chips and networking solutions, with its AI semiconductor sales rising 63% year-over-year to $5.2 billion in Q3 fiscal 2025. The company has secured over $10 billion in AI rack orders from a new customer, likely OpenAI. Meta Platforms is leveraging AI to enhance its platforms like Facebook and Instagram, with revenue climbing 22% year-over-year in Q2 fiscal 2025. Both companies are making significant investments in AI infrastructure and capacity.

Jim Cramer discusses Southern Company's growth

Jim Cramer highlighted Southern Company as a growth utility stock, noting its strong performance following the completion of its nuclear power plant project in Georgia. He described Southern Company as a "growth utility" that offers steady returns and dividends, even in a slower economy. The company provides electricity and natural gas, manages power generation assets, and offers energy solutions. Cramer suggested that the utility sector is changing, with companies like Southern Company showing significant upward momentum.

Rezolve AI shows significant valuation gap with peers

Rezolve Ai is highlighting a substantial valuation difference compared to other AI companies like Anthropic and Sierra AI. Currently valued at $1.37 billion, Rezolve Ai trades at 13 times its annual recurring revenue (ARR), while Anthropic trades at 36.6x and Sierra AI at 100x. Rezolve Ai expects to exceed $100 million in ARR by the end of 2025. The company emphasizes its proprietary LLM technology, patents to reduce hallucination risk, and partnerships with Microsoft and Google. Applying peer multiples suggests Rezolve Ai could be valued between $3.6 billion and $10 billion.

Oracle's AI growth outlook sparks interest in Dell

Oracle's stock is surging due to strong demand for its AI data center services, with its cloud infrastructure business significantly exceeding expectations. Analysts predict Oracle's cloud infrastructure revenue could reach $90 billion in the coming years. The company's multi-cloud provider status and its positioning in sovereign AI services are seen as competitive advantages. Looking ahead, Dell is mentioned as another company that could experience similar AI-related growth, particularly with its AI servers, despite a recent disappointing quarter.

Broadcom benefits from Oracle's AI forecast

Broadcom is seen as a key beneficiary of Oracle's strong AI forecast, particularly as the industry shifts towards the inference phase of AI model deployment. Broadcom leads in producing chips optimized for inference, which are more cost-effective than GPUs for hyperscalers. The company's stock rose about 8% following Oracle's announcement. Analysts note that Broadcom, while less widely owned than Nvidia, has outperformed it recently due to growing appreciation for its custom ASICs and networking solutions. Broadcom's diversified business, including its high-margin software segment, further strengthens its position.

KeyBanc names NVIDIA top AI pick

KeyBanc has reiterated its 'Overweight' rating on NVIDIA (NVDA), maintaining it as a top pick for generative AI investments. Analysts believe NVIDIA remains a strong choice for investors looking to capitalize on the AI boom. While acknowledging other AI stocks may offer greater upside or less risk, KeyBanc's average price target suggests significant potential growth for NVIDIA. The company specializes in AI-driven solutions for various sectors, including data centers, autonomous vehicles, and cloud services.

Oracle's AI cloud outlook boosts fair value estimate

Oracle's first-quarter earnings revealed a 359% increase in remaining performance obligations, largely due to demand from large language model providers. The company projects significant growth for its Oracle Cloud Infrastructure (OCI), expecting it to reach $144 billion in five years, rivaling Google Cloud's scale. This outlook necessitates substantial investment in data center capacity, potentially leading to three years of negative free cash flow. Morningstar has raised its fair value estimate for Oracle stock to $330, seeing further upside if bookings convert to revenue.

Comfort Systems USA benefits from Oracle AI rally

Comfort Systems USA (FIX) has seen its stock break out, reaching a new high, partly due to the rally in Oracle's stock driven by AI demand. Comfort Systems has demonstrated accelerating earnings growth for three consecutive quarters. Its strong relative strength line and composite rating indicate positive market performance. The company's stock is trading above its buy point, suggesting continued upward momentum.

Sources

AI Cloud Oracle Oracle Cloud Infrastructure (OCI) AI Demand Cloud Contracts Larry Ellison Safra Catz AI Development Computing Power OpenAI xAI Microsoft Amazon Web Services (AWS) Google Cloud Market Valuation AI Hardware Custom AI Chips ASICs Broadcom AMD Meta Platforms AI Growth Stocks AI Infrastructure Networking Solutions Generative AI NVIDIA Data Centers Autonomous Vehicles Large Language Models (LLMs) Rezolve Ai Dell Sovereign AI Comfort Systems USA