Oracle’s ambitious outlook for its cloud infrastructure business sent shockwaves across the tech sector this week, fueling gains for chipmakers and server providers tied to the artificial intelligence boom.
The software giant projected revenue will climb to $114 billion by fiscal 2029, underscoring surging demand for AI processing power and the need for expanded data center capacity. “The guide for a 14x of Oracle’s cloud infra segment in 5 years, mostly from GPU cloud demand, and the guide for capex of $35b in FY26 is bullish Nvidia, other AI hardware suppliers and the eco-system of partners building and financing Oracle’s GPU data centers,” UBS analyst Karl Keirstead wrote Wednesday.
Shares of Oracle jumped 36% on the forecast, while related companies across the AI supply chain also rallied. Nvidia, which provides the majority of chips used in AI data centers, rose 4%. Taiwan Semiconductor Manufacturing Co., a key Nvidia supplier, gained more than 4% after reporting a 34% increase in August sales. Broadcom surged 10% on strong demand for networking equipment and custom AI chips.
Other semiconductor firms also benefited. AMD, Nvidia’s main rival in graphics processors, rose 2%. Micron climbed 4% on demand for memory used in advanced chips. Server makers Super Micro and Dell each advanced 2% as investors bet on growing system sales around Nvidia’s hardware.
“The vast majority of our CapEx investments are for revenue-generating equipment that is going into the data centers,” Oracle CEO Safra Catz said Tuesday.
The biggest gainer was CoreWeave, a so-called neo-cloud provider competing with Amazon, Microsoft, and Google by offering specialized AI computing services. Its stock surged 17% amid optimism that smaller, agile cloud companies can seize market share as demand outpaces supply.
Oracle’s forecast reflects how central AI infrastructure has become to the future of enterprise technology. With data center spending accelerating and industry players rushing to meet demand, analysts say the rally across the sector may be just beginning.
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