September 13, 2025

finance  
openai, meta and nvidia Updates

The artificial intelligence sector is experiencing a significant boom, with companies like Nebius and Oracle reporting substantial growth in AI infrastructure. Nebius saw its revenue jump 625% to $105 million in Q2, becoming profitable ahead of schedule. Oracle projects its cloud infrastructure revenue to reach $144 billion by 2030, bolstered by $455 billion in future contracts, including major AI deals with OpenAI and Meta Platforms. This surge in AI infrastructure spending is fueling optimism across the market, with NVIDIA's CEO, Jensen Huang, at the forefront of what is being described as a new industrial revolution, with AI infrastructure spending estimates now reaching as high as seven trillion dollars. AI chip designers like Cambricon in China are also seeing strong performance, with shares doubling and significant profit increases, driven by the nation's focus on tech self-sufficiency. Companies like Vertiv, a partner to NVIDIA, are also poised for growth by providing essential data center infrastructure for AI. Even established tech giants like Microsoft are involved, having made a separate agreement with OpenAI, which is also pursuing a 'full stack' strategy to control its own infrastructure and develop a wider range of AI software. The impact of AI is also being felt in workforce adjustments, with reports of companies like Klarna reducing staff due to AI advancements, creating uncertainty for tech job seekers. Meanwhile, companies like Innodata are pivoting to become AI partners, focusing on smart data services, and Ibex is seeing its stock soar due to successful AI deployments in customer experience and government sectors.

Key Takeaways

  • Nebius reported a 625% revenue increase to $105 million in Q2 and achieved profitability early.
  • Oracle anticipates its cloud infrastructure revenue will reach $144 billion by 2030, supported by $455 billion in committed contracts, including deals with OpenAI and Meta Platforms.
  • NVIDIA's CEO, Jensen Huang, is leading a significant increase in AI infrastructure spending, with estimates now reaching up to seven trillion dollars.
  • Chinese AI chip designer Cambricon saw its shares more than double in August and reported a first-half revenue of 2.9 billion yuan and a profit of 1 billion yuan.
  • OpenAI is working towards a new corporate structure to facilitate fundraising and pursue a 'full stack' strategy, aiming to control its own infrastructure and develop a suite of AI software.
  • Vertiv, a partner to NVIDIA, is positioned for growth in AI data center infrastructure, with projected significant revenue increases in 2025 and 2026.
  • AI chip stocks, including Nvidia, Broadcom, and AMD, saw gains following Oracle's earnings report and major cloud deals.
  • Reports suggest Klarna Group has reduced its workforce by 3,400 employees due to AI advancements.
  • Innodata is transitioning to become an AI partner, focusing on smart data and evaluation services, and reported 79% revenue growth in Q2 2025.
  • Ibex shares surged 41% to an all-time high following record revenue for fiscal year 2025, driven by AI tool expansion and government sector targeting.

Nebius and Oracle Lead AI Infrastructure Boom

Nebius and Oracle are showing massive growth in the AI infrastructure sector. Nebius's revenue surged 625% to $105 million in Q2, and its core business became profitable ahead of schedule. Oracle projects its cloud infrastructure revenue to reach $144 billion by 2030, backed by $455 billion in contracts. Both companies are securing key AI deals and are seen as good investments compared to other AI leaders.

Nebius and Oracle Drive AI Infrastructure Growth

Nebius and Oracle are leading the AI infrastructure market with significant growth. Nebius reported a 625% revenue increase to $105 million in Q2 and achieved positive adjusted EBITDA early. Oracle anticipates its cloud infrastructure revenue will hit $144 billion by 2030, supported by $455 billion in committed contracts. Both companies are securing major AI infrastructure deals, making them attractive investment opportunities.

Oracle's AI Outlook Fuels Stock Surge

Oracle's stock has significantly increased, more than doubling in 2025, following its latest earnings report. Despite slightly missing expectations, the company reported a surge in contract signings and expects its cloud infrastructure revenue to grow from $10.3 billion in fiscal 2025 to $144 billion by fiscal 2030. Oracle has secured $455 billion in future contracts, including major AI deals with OpenAI and Meta Platforms, and plans to build 37 new data centers.

China AI Stocks Remain Strong Despite Index Changes

Chinese investors are staying optimistic about AI stocks like Cambricon, even with a potential $1.1 billion in passive selling due to index rebalancing. Cambricon, an AI chip designer, has seen its shares more than double in August. Analysts believe Beijing's focus on tech self-sufficiency will continue to drive growth in the sector. Cambricon reported a significant revenue increase to 2.9 billion yuan in the first half of 2025 and swung to a profit of 1 billion yuan.

Chinese Investors Bullish on AI Amidst Index Rebalance

Despite a potential $1.1 billion in passive selling from index rebalancing, Chinese investors remain confident in AI stocks like Cambricon. Cambricon, an AI chip designer, more than doubled its share value in August. Analysts expect China's push for technological independence to fuel further growth in the AI sector. The company reported a substantial first-half revenue of 2.9 billion yuan and achieved a profit of approximately 1 billion yuan.

Jim Cramer on Klarna and AI Job Cuts

Jim Cramer discussed Klarna Group plc (KLAR) following its recent public offering. While not detailing Klarna's business, Cramer mentioned hearing that the company reduced its workforce by 3,400 employees due to AI advancements. He noted that AI's impact is creating uncertainty for both early-career and recent graduates in the tech industry.

Jim Cramer Discusses NVIDIA's AI Spending

Jim Cramer believes NVIDIA Corporation (NVDA) is leading a new industrial revolution. He shared that spending estimates for AI infrastructure, driven by NVIDIA, have increased significantly. While initial projections were around three trillion dollars, Cramer is now hearing figures as high as seven trillion dollars. He highlighted that NVIDIA's CEO, Jensen Huang, is at the forefront of this massive investment.

Cramer Links Oracle's $455B Backlog to Stargate Project

Jim Cramer attributes Oracle Corp.'s massive $455 billion backlog to the 'Stargate' AI infrastructure project, a joint venture involving Oracle, OpenAI, and SoftBank. He expressed surprise at the surge in Oracle's pipeline, questioning who else would place such large orders. Oracle's backlog, a measure of future contracted revenue, jumped 359% to $455 billion, with CEO Safra Catz confirming four multi-billion-dollar contracts were signed.

OpenAI Aims for Full Stack Strategy Post-Microsoft Dispute

OpenAI is nearing a resolution with Microsoft regarding a contractual dispute, which will allow for a new corporate structure and easier fundraising. This move supports OpenAI's ambitious 'full stack' strategy, aiming to control all aspects of its business, from energy and chips to data centers, models, and applications. The company plans to build its own infrastructure and develop a suite of AI software beyond ChatGPT, potentially competing with giants like Google.

Vertiv Stock Poised for Growth on AI Spending

Following Oracle's strong report on AI spending, Vertiv (VRT) is positioned for growth as a key provider of AI data center infrastructure. Vertiv partners with Nvidia and supports the high-density computing power needed for AI. The company has a Zacks Rank #1 (Strong Buy) due to its improving earnings outlook and is trading below its average price target. Vertiv's revenue is projected to grow significantly in 2025 and 2026.

AI Chip Stocks Rise on Oracle Deals and Demand

AI chip stocks like Nvidia, Broadcom, and AMD saw gains following Oracle's earnings report and major cloud deals. Oracle's backlog surged to $455 billion, driven by AI hyperscalers and a significant deal with OpenAI. Oracle forecasts substantial growth in its cloud infrastructure revenue, aiming for $144 billion by 2030. Microsoft also made a separate agreement with OpenAI, while Taiwan Semiconductor reported increased sales, indicating strong demand for AI infrastructure.

Innodata Could Be Next Palantir in AI

Innodata is transitioning from traditional data services to becoming an AI partner, focusing on smart data and evaluation services. Similar to Palantir, Innodata aims to become a core platform for customers building AI applications. The company reported strong revenue growth of 79% in Q2 2025 and is expanding into high-margin agentic AI services, potentially positioning it for significant growth by the 2030s.

Ibex Stock Soars on AI Success

Ibex (IBEX) shares surged 41% to an all-time high after reporting record revenue for fiscal year 2025. The company's expansion of AI tools and targeting of new verticals, particularly government, is driving growth. Ibex's CEO highlighted the shift from AI proof-of-concept to full-scale deployments, leveraging generative AI through its Wave iX platform to enhance customer experiences.

Sources

AI infrastructure Cloud computing Revenue growth Investment opportunities AI deals Data centers AI chips Technological independence AI job cuts AI spending Industrial revolution AI backlog Full stack strategy AI data center infrastructure High-density computing AI hyperscalers AI platform Agentic AI Generative AI Customer experience