Oracle and Salesforce are both making significant moves in enterprise AI, but investors appear to favor Salesforce's lower-risk approach. Oracle's cloud infrastructure sales doubled to $7.4 billion in fiscal Q1 2027, while its total backlog reached $664 billion after booking over $30 billion in new AI cloud contracts. The company counts OpenAI, Meta, and Nvidia among its customers, though its aggressive data center spending led to a $28.5 billion capital expenditure and a $5.40 billion free cash flow loss. Salesforce, meanwhile, partnered with Alphabet and Anthropic to embed AI models into its software and launched its Agentforce platform under a usage-based pricing model.
AWS is also pouring money into AI infrastructure, revealing a $220 billion capital investment that it says is creating a self-reinforcing cycle of demand. The company reported a near $500 billion backlog and acknowledged it will not have enough capacity to meet all 2026 demand. Amazon plans to invest $18 billion in data centers in Louisiana this year alone. Western Digital, Nvidia, and Micron were highlighted as the top AI infrastructure stocks providing the physical backbone for this expansion.
On the hardware side, SiMa.ai raised $150 million at a $1.45 billion valuation to develop custom chips for physical AI devices like robots and drones. Fidelity and Amplify co-led the Series C round, and current partners include Robert Bosch, Emerson Electric, and Micron. The startup aims to compete against Nvidia's more expensive CUDA-based hardware. Nvidia also released Proxies, a free open-source tool designed to detect and prevent rogue AI agents from causing harm, using machine learning and human oversight.
Several companies are rolling out AI tools in specialized industries. Palo Alto Networks launched its Unit 42 Continuous Frontier AI Defense platform, which uses Anthropic and OpenAI models to hunt for security exposures on enterprise networks. HSBC introduced Smart Checking, an AI tool that extracts and structures data from trade documents, now live in the UK, Hong Kong, and the UAE. Intapp gained traction after Forvis Mazars adopted its DealCloud with Celeste platform to automate corporate finance workflows. DataMeds AI surged nearly 30 percent after acquiring Helomics for $1.5 million, gaining a CLIA/CAP-certified cancer diagnostics lab.
In academia, Shaun Mahony, a professor at Penn State, was named the Dorothy Foehr Huck and J. Lloyd Huck Chair in Genomics and AI. His research uses machine learning to study how transcription factors control gene activity, building neural networks that learn genomic patterns. His work explores why different cells behave differently despite carrying the same DNA.
Key Takeaways
- <ul><li>Oracle's cloud infrastructure sales doubled to $7.4 billion, with a $664 billion backlog, but its $28.5 billion capital expenditure and $5.40 billion free cash flow loss raise investor concerns.</li><li>Salesforce is seen as the lower-risk AI stock pick, having partnered with Alphabet and Anthropic and launched its Agentforce platform under a usage-based model.</li><li>AWS revealed a $220 billion AI capital investment and a near $500 billion backlog, but admits it will lack capacity to meet all 2026 demand.</li><li>SiMa.ai raised $150 million at a $1.45 billion valuation to build custom chips for physical AI devices, competing against Nvidia's CUDA-based hardware.</li><li>Nvidia released Proxies, a free open-source tool that uses machine learning to detect and prevent rogue AI agents.</li><li>Palo Alto Networks launched Unit 42 Continuous Frontier AI Defense, using Anthropic and OpenAI models for enterprise security, with Morgan Stanley raising its price target to $410.</li><li>HSBC rolled out Smart Checking, an AI tool for trade finance, now live in the UK, Hong Kong, and UAE, processing over a million documentary presentations annually.</li><li>DataMeds AI stock rose 29.82 percent after acquiring Helomics for $1.5 million, gaining a CLIA/CAP-certified cancer diagnostics lab and settling $19 million in litigation.</li><li>Intapp projects $912.0 million in revenue and $88.7 million in earnings by 2029 after Forvis Mazars adopted its DealCloud with Celeste AI platform.</li><li>Shaun Mahony was named Huck Chair in Genomics and AI at Penn State, using machine learning to study how transcription factors control gene activity.</li></ul>
Oracle and Salesforce compete as top enterprise AI stocks
Oracle and Salesforce are both investing heavily in artificial intelligence. Oracle's cloud infrastructure sales doubled to $7.4 billion in fiscal Q1 2027, but it spent $28.5 billion on capital expenditures. Salesforce shifted to a usage-based model and launched its Agentforce platform. Analysts believe Salesforce offers lower risk for investors compared to Oracle's expensive data center strategy.
Oracle and Salesforce battle for the best AI stock pick
Both companies are making big moves into AI technology. Oracle secured contracts with OpenAI, Meta, and Nvidia while its cloud infrastructure sales grew 121 percent year over year. Salesforce partnered with Alphabet and Anthropic to integrate AI models into its software. The article recommends Salesforce as the better choice because it spends less on risky data center projects than Oracle does.
Oracle reports $664 billion backlog amid AI spending push
Oracle reported fiscal first-quarter results on September 11, 2026, that beat Wall Street expectations. The company booked over $30 billion in new AI cloud contracts, pushing its total backlog to $664 billion. Oracle's free cash flow loss was $5.40 billion, which was better than the expected $9.56 billion outflow. However, the company plans to raise about $40 billion through debt and equity during fiscal 2027 to fund its expansion.
DataMeds AI stock surges on cancer platform acquisition
DataMeds AI Inc. stock rose 29.82 percent after acquiring Helomics for $1.5 million in stock and notes. The deal gave DataMeds a CLIA/CAP-certified cancer diagnostics lab and contracts. The company also settled litigation tied to its 2023 Wellgistics agreement, removing about $19 million in liabilities. DataMeds is now expanding into oncology and developing a Health Lives Here app with Tollo Health and the NFL Alumni Association.
Palo Alto Networks stock rises with new AI security platform
Palo Alto Networks stock jumped about 5 percent after launching its Unit 42 Continuous Frontier AI Defense platform. The service uses Anthropic and OpenAI models to hunt for security exposures on enterprise networks. Morgan Stanley raised its price target to $410 and kept PANW as a top pick. Bernstein lowered its rating to Market Perform but increased its target to $351 due to valuation concerns.
SiMa.ai raises $150M to build chips for physical AI devices
SiMa.ai, a startup making custom chips for physical AI devices like robots and drones, raised $150 million at a $1.45 billion valuation. Fidelity and Amplify co-led the Series C round with support from Dell Technologies Capital and others. The money will help SiMa.ai scale its platform and compete against Nvidia's more expensive CUDA-based hardware. Current partners include Robert Bosch GmbH, Emerson Electric Co. and Micron Technology Co.
Shaun Mahony named Huck Chair in Genomics and AI
Shaun Mahony, a professor at Penn State, was named the Dorothy Foehr Huck and J. Lloyd Huck Chair in Genomics and AI. His research uses machine learning to study how proteins called transcription factors control which genes are active in a cell. His team builds neural networks that learn genomic patterns and combines them with experimental data. The work explores why different cells behave differently despite carrying the same DNA.
AWS says $220B AI spending creates a sales flywheel
AWS says its $220 billion capital investment in AI is creating a flywheel where more AI use drives more cloud service use, which generates more data and more AI demand. AWS AI head Matt Wood said the company is not investing on a whim but responding to strong customer needs. Amazon revealed a near $500 billion backlog and said it will still lack enough capacity to meet all 2026 demand. The company also plans to invest $18 billion in data centers in Louisiana this year.
Nvidia releases open-source tool to stop rogue AI agents
Nvidia launched a tool called Proxies, an open-source AI security system designed to detect and prevent rogue AI agents from causing harm. Proxies uses machine learning algorithms and human oversight to identify potential threats. Nvidia says it is the first open-source AI security system of its kind. The tool is free to download and comes amid growing concerns about AI safety incidents.
HSBC launches AI tool to speed up trade finance
HSBC introduced Smart Checking, an AI-powered tool designed to improve trade finance operations. The tool uses AI to extract and classify information from complex trade documents, turning them into structured data. HSBC processes over a million documentary presentations each year, and the tool aims to speed up payments and reduce delays. Smart Checking is now live in the United Kingdom, Hong Kong and the United Arab Emirates, with plans for global expansion.
Western Digital Named Among Top AI Infrastructure Stocks
Western Digital is one of three top AI infrastructure stocks highlighted in a recent analysis. The other two picks are NVIDIA and Micron. The AI boom is reshaping bond markets due to heavy spending on AI infrastructure. These three companies provide the physical backbone for growing AI demand.
Intapp Gains Traction as Forvis Mazars Adopts AI Tools
Forvis Mazars Capital Advisors adopted Intapp DealCloud with Celeste to automate corporate finance workflows. This move highlights demand for Intapp's agentic AI approach that combines specialized playbooks with a single system of record. Intapp projects revenues of $912.0 million and earnings of $88.7 million by 2029. Investors must watch if AI adoption translates into stable margins.
Sources
- Oracle vs. Salesforce: Which Enterprise AI Stock Has More Room to Run?
- Oracle vs. Salesforce: Which Enterprise AI Stock Has More Room to Run?
- Oracle (ORCL) Reports a $664 Billion Backlog. Can AI Growth Outpace its Cash Burn?
- MEDS Stock Soars As AI Oncology Bet Ignites Trading Frenzy
- PANW Stock Jumps As New AI Security Platform Gains Traction
- Physical AI custom chip startup SiMa.ai raises $150M at $1.45B valuation
- Mahony named Huck Chair in Genomics and AI
- AWS’ $220B AI Plan Is Driving A Sales Flywheel Effect; AI Chief Explains Not Investing ‘On A Whim’
- Nvidia’s Answer to Rogue Agents Is an Open-Source AI Security System
- HSBC Deploys AI to Enhance Trade Finance Operations
- Western Digital Stock Is Just One Of 3 Top AI Infrastructure Picks
- How Investors May Respond To Intapp (INTA) Client Adopts AI Workflow Tools
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