Nvidia Boosts Broadcom, OpenAI Deal, Amazon Anthropic

The artificial intelligence sector is experiencing significant growth and investment, with major tech companies reporting strong financial performance and ambitious expansion plans. Oracle, in particular, has seen its stock surge following projections of massive cloud revenue growth, reaching an estimated $144 billion by fiscal year 2027, which has also boosted the value of AI chipmakers like Nvidia. Oracle's backlog has grown to $455 billion, and the company plans substantial capital expenditures, including a $35 billion investment in AI infrastructure, potentially using stock grants to fund these initiatives. Broadcom is also making a strong push into AI, with CEO Hock Tan's compensation tied to achieving up to $120 billion in AI product sales by 2030, a goal bolstered by a significant $10 billion deal with OpenAI for custom AI chips expected to boost sales from 2026. Meanwhile, Amazon benefits from the $183 billion valuation of Anthropic, integrating its AI chatbot Claude into AWS and promoting its custom silicon as an alternative to Nvidia's GPUs. Google Cloud is also reporting billions in AI revenue, with a backlog of $106 billion and a significant portion of its customers already utilizing its AI tools. Salesforce is demonstrating AI revenue growth through products like Agentforce and Data Cloud, raising its full-year guidance despite market concerns. In contrast, C3.ai is facing performance issues, with its stock near a 52-week low due to revenue declines and widening losses, though it highlights long-term opportunities and is undergoing restructuring.

Key Takeaways

• Broadcom CEO Hock Tan's compensation is tied to achieving AI sales targets, with potential payouts exceeding $600 million if the company reaches $120 billion in AI product sales by 2030.
• Broadcom has secured OpenAI as a major customer for its custom AI chips, with sales expected to increase significantly starting in 2026.
• Oracle projects its cloud revenue to reach $144 billion by fiscal year 2027, with a current backlog of $455 billion, significantly boosting its stock and benefiting Nvidia.
• Oracle plans to invest $35 billion in AI infrastructure for fiscal year 2026 and is considering using stock grants for employees to fund these investments.
• Amazon benefits from Anthropic's $183 billion valuation, integrating Anthropic's Claude chatbot into AWS and promoting its custom silicon.
• Google Cloud has generated billions in AI revenue, with a backlog of $106 billion and over half of its customers already using its AI tools.
• Salesforce is experiencing AI revenue growth, exceeding expectations and raising its full-year guidance, driven by products like Agentforce and Data Cloud.
• Anthropic has secured $13 billion in new funding, reaching a valuation of $183 billion.
• C3.ai's stock is near a 52-week low due to revenue declines and widening losses, prompting restructuring efforts.
• The AI market shows robust growth, with companies like Oracle, Broadcom, Google, and Amazon investing heavily in infrastructure and services.

Broadcom CEO's potential $616M payout tied to 2030 AI sales goal

Broadcom CEO Hock Tan could earn over $600 million in stock if the company reaches $120 billion in AI product sales by 2030. A smaller payout of $205 million is possible if AI revenue hits $90 billion. This compensation plan highlights Broadcom's focus on becoming a major AI player and offering custom chips as an alternative to competitors. Tan recently confirmed a significant new AI chip customer, identified as OpenAI, and expects higher sales for custom AI chips in 2026. He has also agreed to stay as CEO until at least 2030.

Broadcom CEO's pay linked to AI success through 2030

Broadcom CEO Hock E. Tan has received a long-term equity award that connects his compensation to the company's AI revenue goals through fiscal year 2030. The award vests if Broadcom meets demanding AI revenue targets and Tan remains CEO. At maximum performance, Tan could receive over $600 million in shares if AI revenue surpasses $120 billion. This move underscores Broadcom's commitment to AI and Tan's leadership during a period of significant industry transformation. The company is positioning its custom silicon as a competitor to Nvidia's AI processors, recently securing OpenAI as a major customer.

Broadcom CEO could earn $616M from AI sales targets

Broadcom CEO Hock Tan is set to potentially receive up to $616.6 million in stock awards if the company achieves $120 billion or more in AI product sales by fiscal year 2030. A lower target of $90 billion in AI revenue by the same year would yield about $205.5 million. This performance-based pay package emphasizes Broadcom's strategic push into the AI computing market, aiming to challenge Nvidia's dominance with custom-designed chips. The company recently announced a significant deal with OpenAI, expected to boost custom chip sales starting in 2026.

Broadcom CEO's potential $616M AI pay day rivals Musk's

Broadcom CEO Hock Tan is in line for a potential $616.6 million stock award if the company achieves $120 billion in AI sales by 2030. This performance-based compensation is tied to meeting specific AI revenue milestones between 2028 and 2030 and Tan remaining CEO. Broadcom's AI strategy is gaining momentum, highlighted by a $10 billion deal with OpenAI and increasing quarterly AI revenue. This significant payout structure mirrors large performance-linked deals seen with executives like Elon Musk.

Oracle's AI projections boost Larry Ellison's wealth by $100 billion

Larry Ellison's net worth increased by nearly $100 billion as Oracle's stock surged 38% following strong AI growth projections. The company's cloud infrastructure revenue is expected to reach $18 billion this fiscal year and grow to $144 billion by fiscal year 2027. Oracle also reported a 359% increase in contracted revenue not yet recognized, reaching $455 billion. This surge places Ellison close to Elon Musk in net worth, with Oracle's market capitalization nearing $940 billion.

Analysts stunned by Oracle's massive AI revenue forecasts

Analysts expressed astonishment at Oracle's latest revenue projections, particularly for its cloud infrastructure business. The company forecasts cloud revenue to climb from $18 billion this fiscal year to $144 billion over the next four years. This projection, coupled with a significant increase in contracted revenue, has sent Oracle's stock soaring. CEO Safra Catz highlighted four multi-billion dollar contracts signed in the quarter, including a deal with OpenAI for data center capacity. Analysts described the results as a 'seismic shift' in computing.

Oracle's historic quarter fuels AI stock surge

Oracle's strong performance, with a backlog growing to $455 billion, has significantly boosted the AI stock market. The company's projections indicate continued robust AI spending for years to come. Analysts were highly impressed, calling the quarter 'truly historic' and a 'seismic shift' in computing. Oracle forecasts cloud revenue to reach $144 billion by 2030, with much of this already reflected in its backlog. This news sent Oracle's shares up, along with those of AI chip giants like Nvidia and Broadcom.

Amazon benefits as Anthropic AI valuation hits $183 billion

AI company Anthropic has secured $13 billion in new funding, reaching a valuation of $183 billion. As a major investor, Amazon benefits from this growth, integrating Anthropic's chatbot Claude into its AWS cloud platform. This integration strengthens AWS by offering customers various AI models and enhances Amazon's custom silicon, Trainium and Inferentia, as a cost-effective alternative to Nvidia's GPUs. Anthropic's rapid growth signals strong adoption for Amazon's cloud infrastructure and custom hardware.

Salesforce sees AI revenue growth despite market concerns

Salesforce reported strong second-quarter results, exceeding revenue and earnings expectations and raising its full-year guidance. The company's AI monetization efforts are showing positive signs, with Agentforce and Data Cloud driving double-digit growth in its Subscription & Support segment for the first time in five quarters. Despite some momentum concerns and AI monetization risks, Salesforce's valuation remains attractive compared to peers. Investors are advised to consider a dollar cost averaging approach due to market volatility.

Fyxer AI achieves $10M ARR in six months

AI productivity tool Fyxer has rapidly grown to $10 million in annual recurring revenue (ARR) within six months, with a team of 30 employees. The company leveraged a decade of data from its executive assistant agency to build its AI solution, focusing on proactive assistance and workflow integration. Fyxer's success highlights the importance of real-world data and addressing user pain points in the AI market. The company prioritizes scaling efficiently, learning from past rapid growth challenges.

Google Cloud reports billions in AI revenue

Google Cloud has generated billions in revenue from its AI services, according to CEO Thomas Kurian. The company's backlog has reached $106 billion, growing faster than revenue, with over half expected to convert in the next two years. Google Cloud's revenue increased 32% year-over-year to $13.62 billion, and it is actively acquiring new customers, with nearly two-thirds already using its AI tools. Revenue streams include consumption-based charges and subscriptions for products like Gemini and Google Workspace.

Oracle's massive backlog boosts Nvidia stock

Nvidia's stock rose significantly after Oracle reported a revenue backlog of $455 billion, more than four times larger than the previous year. This strong performance from Oracle, a major AI cloud provider, eased concerns about a slowdown in AI spending. Oracle plans to invest $35 billion in capital expenditures for fiscal year 2026, much of which will support AI infrastructure using chips like Nvidia's. The unexpected size of Oracle's backlog surprised Wall Street analysts.

Oracle considers stock grants over cash for AI investments

Oracle is reportedly considering replacing cash raises and bonuses with stock grants for employees to fund its significant AI infrastructure investments. This move aims to manage costs as the company spends billions on data centers and Nvidia chips, including a major partnership with OpenAI. While this strategy could align employees with long-term performance, it may also impact morale. Oracle has also recently implemented layoffs in its cloud infrastructure unit to reallocate resources toward AI projects.

C3.ai stock near 52-week low amid performance issues

C3.ai's stock has fallen 36.2% in the past three months, trading near its 52-week low due to revenue declines and widening losses. Poor sales execution, leadership changes, and a withdrawn full-year guidance have impacted investor confidence. Despite these challenges, C3.ai highlights strong long-term opportunities with major customers like the U.S. Army and partnerships across various industries. The company is implementing new leadership and restructuring its sales teams to improve performance and capture market share in the enterprise AI sector.

Sources

• Broadcom CEO Poised for Payout If He Reaches 2030 AI Sales Goal
• What's Going On With Broadcom Stock Wednesday?
• Broadcom's Hock Tan set to earn $616.6 million stock awards if AI sales boom
• Broadcom's CEO joins Musk in line for bumper AI-related pay day in 2030
• Larry Ellison Nearly $100 Billion Richer As Oracle Surges In Largest Rally Since 1992
• 'We're all kind of in shock.' Oracle's revenue projections leave analysts slackjawed
• The AI Trade Picks Up Steam After Oracle's 'Truly Historic' Quarter
• Artificial Intelligence (AI) Unicorn Anthropic Just Hit a $183 Billion Valuation. Here's What It Means for Amazon Investors @themotleyfool #stocks $AMZN
• Salesforce (CRM): AI Monetization Is Happening Whether Investors Accept It Or Not
• From $1M to $10M ARR in 6 Months: How Fyxer is Winning AI Productivity
• Google Cloud CEO Says Tech Giant Has ‘Made Billions’ on AI
• Why Is Nvidia Stock (NVDA) Soaring Today? @themotleyfool #stocks $NVDA
• Oracle Mulls Stock Grants Over Cash Raises to Fund AI Investments
• C3.ai Trades Near 52-Week Low: Right Time to Buy the Stock?