OpenAI Oracle Partnership, Nvidia Rubin Chip Launch

The artificial intelligence sector continues to see significant investment and development across major tech players. Oracle's stock has surged, nearly doubling this year, driven by a massive backlog of $455 billion in deals for AI infrastructure, including a partnership with OpenAI. The company plans to reveal a new AI service next month and is projected to see substantial revenue growth in its cloud business. Meanwhile, Nvidia announced its new Rubin CPX AI chip, designed for advanced video and software processing, aiming for greater efficiency in AI workloads. In the chip manufacturing space, TSMC is positioned for long-term growth as it produces chips for Nvidia, AMD, and custom AI accelerators for cloud hyperscalers, benefiting from the overall AI ecosystem regardless of specific chip designs. Alibaba is raising $3.2 billion through a convertible bond to expand its cloud computing and AI capabilities, with a focus on upgrading data centers. On the cloud integration front, IonQ is making its quantum systems accessible through major providers like Microsoft Azure, Amazon Web Services, and Google Cloud Platform, enabling AI developers to use quantum tools more easily, though large-scale commercial contracts are still limited. The surge in AI data center spending by companies like Nvidia and Microsoft is impacting the broader market, contributing to a slowdown in S&P 500 share buybacks. Elastic's AI-powered search platform is driving an upbeat revenue outlook, with projections for significant growth. Separately, Worldcoin's cryptocurrency (WLD) has seen a price rally, nearing a $4 billion market capitalization, partly influenced by the OpenAI-Oracle deal and strategic investments. Global Mofy AI reported revenue growth but a drop in earnings per share.

Key Takeaways

• Oracle's stock has nearly doubled this year, fueled by a $455 billion backlog for AI infrastructure and a partnership with OpenAI.
• Nvidia is launching its new Rubin CPX AI chip for advanced video and software processing to enhance AI workload efficiency.
• TSMC is expected to see significant long-term AI growth as a key manufacturer for Nvidia, AMD, and cloud hyperscalers.
• Alibaba is raising $3.2 billion via a convertible bond to fund expansion in cloud computing and AI, focusing on data center upgrades.
• IonQ is integrating its quantum computing systems with Microsoft Azure, AWS, and Google Cloud Platform for easier AI developer access.
• Increased AI data center spending by tech giants like Nvidia and Microsoft is contributing to a slowdown in S&P 500 share buybacks.
• Elastic's AI search platform is driving strong enterprise adoption and an optimistic revenue outlook for fiscal year 2026.
• Worldcoin's cryptocurrency (WLD) has surged, approaching a $4 billion market capitalization, influenced by the OpenAI-Oracle deal and investments.
• Global Mofy AI reported significant revenue growth but a decline in earnings per share in its latest financial results.
• Oracle's cloud business is projected for substantial revenue growth, with estimates reaching $18 billion this year and $144 billion by 2034.

Oracle stock surges on AI demand, analysts raise targets

Oracle's stock price has nearly doubled this year, reaching a new record high after a 36% jump on Wednesday. This surge is driven by a massive increase in the company's backlog of business, fueled by high demand for AI infrastructure. Analysts from major firms like Deutsche Bank and Bank of America have raised their price targets, seeing Oracle as a key player in the AI race. The company plans to reveal a new AI service at an upcoming event next month.

Dow Jones futures rise as Fed rate cuts loom, Oracle stock gains on AI

Stock futures showed an increase on Thursday, with the S&P 500 and Nasdaq building on record highs from the previous day. This optimism is fueled by consumer inflation data that met expectations, strengthening the belief that the Federal Reserve will lower interest rates next week. Oracle's stock experienced a significant rise, following a blockbuster earnings report that highlighted a nearly half-trillion-dollar backlog, signaling strong demand for artificial intelligence infrastructure. Major tech stocks saw mixed performance, while Warner Bros. Discovery's stock soared on takeover rumors.

IonQ leads in quantum AI integration with cloud providers

IonQ is an emerging quantum computing company that stands out by integrating its systems directly with major cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud Platform. This strategy allows AI developers to easily access quantum tools without significant upfront investment. While this approach offers a first-mover advantage in accessibility, IonQ's business results are currently muted, with limited large-scale commercial contracts. The company faces potential risks if cloud providers develop their own quantum solutions.

TSMC could outperform Nvidia in AI growth by 2030

While Nvidia has led the AI chip market with its GPUs, Taiwan Semiconductor Manufacturing (TSMC) is positioned for significant long-term growth. TSMC manufactures chips for Nvidia, AMD, and custom AI accelerators used by cloud hyperscalers. Even as companies develop their own AI chips (ASICs), they still rely on manufacturers like TSMC. With a more moderate valuation compared to Nvidia, TSMC is seen as a foundational enabler of the AI ecosystem, poised to benefit regardless of which specific chip designs dominate.

Alibaba raises $3.2B via convertible bond for cloud and AI expansion

Alibaba plans to raise $3.2 billion by issuing a zero-coupon convertible bond to fund its expansion in cloud computing and artificial intelligence. Approximately 80% of the funds will be used to upgrade data centers and technology, while the remaining 20% will support international e-commerce ventures. This move comes as China's cloud infrastructure spending is projected to grow significantly, driven by AI adoption. Alibaba Cloud leads the Chinese market, with Huawei Cloud and Tencent Cloud following.

Nvidia stock climbs on new AI chip for video and software

Nvidia's stock rose as the company announced its new Rubin CPX AI chip, designed for advanced video and software processing. This chip separates input understanding from response generation, aiming for greater efficiency in AI workloads. The Rubin CPX is expected to transform software generation and video processing in data centers. Nvidia projects significant revenue from this new hardware, supported by the rapidly growing AI hardware market.

Global Mofy AI posts revenue growth but EPS drops

Global Mofy AI Limited's stock is trading up by 11.43% following its latest earnings report. The company reported a significant revenue increase to $26.7 million from $19.9 million. However, earnings per share (EPS) dropped from $5.40 to 87 cents, creating a mixed picture for investors. Despite the revenue growth, profitability ratios show room for improvement. The company holds substantial intangible assets and maintains a cautious leverage ratio.

Worldcoin nears $4B market cap after OpenAI's Oracle deal

Worldcoin's cryptocurrency (WLD) has seen a significant price rally, nearing a $4 billion market capitalization. This surge follows news that OpenAI has agreed to a $300 billion deal with Oracle for computing power over five years. Additionally, Bitmine confirmed a strategic investment in Worldcoin, adding to its treasury reserve strategy. Technical analysis suggests a potential breakout for WLD, with targets around $4 billion and possibly $9.

AI data center spending slows S&P 500 share buybacks

The 'Magnificent Seven' tech companies, including Nvidia and Microsoft, are significantly increasing their spending on AI data centers. This substantial investment in capital expenditures is leading to a slowdown in share buybacks across the S&P 500 index. While S&P 500 companies reported growth in capital expenditures, gross buybacks saw a decline. Goldman Sachs projects a moderate increase in buybacks next year, but high AI-related spending could limit this growth.

Elastic AI search growth boosts revenue outlook

Elastic's AI-powered search platform is showing strong enterprise adoption, leading to an upbeat revenue outlook for fiscal year 2026. The company projects 14% year-over-year revenue growth, driven by its AI search offerings and potential for cross-selling. While competition and potential margin pressure from cloud providers remain risks, investors are reacting positively to the company's performance. Elastic anticipates significant revenue and earnings growth by 2028.

Oracle's AI numbers impress Wall Street, boosting stock

Oracle's stock surged 36% following strong earnings, making it a favored AI play for investors. The company is positioning itself as a key utility provider for the AI boom, offering essential resources for building and running AI models. Oracle's cloud business is projected to see substantial revenue growth, reaching $18 billion this year and $144 billion by the next decade. A significant backlog of $455 billion in deals, including a partnership with OpenAI, provides concrete growth prospects.

Box unveils AI innovations Box Automate and Shield Pro

Box has introduced new AI-driven products, including Box Automate and Box Shield Pro, to enhance its offerings in data handling and workflow automation. These innovations aim to boost customer adoption and premium pricing capabilities. While the company's stock has seen a modest rise, analysts remain optimistic, with consensus price targets suggesting potential upside. Box faces challenges from competition and pricing pressures but is focused on meeting digital transformation and compliance demands.

Sources

• Why Wall Street Analysts Say the Record Run for Oracle Stock is Just Getting Started
• Dow Jones Today: Stock Futures Rise as Wall Street Awaits Rate Cuts; AI Enthusiasm Lifts Oracle Stock Higher
• This Artificial Intelligence (AI) Stock Has a First-Mover Advantage in Quantum Integration @themotleyfool #stocks $IONQ
• Prediction: This Artificial Intelligence (AI) Stock Could Outperform Nvidia by 2030 @themotleyfool #stocks $TSM $NVDA
• Alibaba Plans To Raise $3.2 Billion Through Convertible Bond As It Doubles Down On Cloud Expansion And $53 Billion AI Investment Drive - Alibaba Gr Hldgs (NYSE:BABA), Tencent Holdings (OTC:TCEHY)
• NVIDIA Corporation (NVDA) Stock; Climbs 4% Amid Hype Over AI Video, Software Chip
• Global Mofy AI's Earnings Shake Market
• Worldcoin (WLD) Nears $4B Marketcap as Sam Altman’s OpenAI Seals $300B Oracle Deal
• AI Data Center Spending By Nvidia, Microsoft And Other 'Mag 7' Titans Is Squeezing S&P 500 Share Buybacks, Goldman Sachs Warns
• How Investors Are Reacting To Elastic (ESTC) AI Search Growth and Upbeat 2026 Revenue Outlook
• Oracle is giving Wall Street numbers it can bet on as Larry Ellison's tech giant becomes investors' new favorite AI play
• Box (BOX) Unveils AI Innovations With Box Automate And Box Shield Pro