oracle's ai forecast lifts nvidia, broadcom, and amd stocks
Santa Clara, Thursday, 11 September 2025.
oracle’s bullish outlook on cloud infrastructure, projecting growth to $114 billion by 2029, sent semiconductor stocks soaring. nvidia, broadcom, amd, and micron all saw gains, with broadcom’s ceo predicting ai revenue will surpass all other revenue within two years, targeting $120 billion by 2030. this surge reflects confidence in the ai sector, fueled by increasing demand for ai chips and systems, and a shift towards customized solutions.
nvidia’s market position
Nvidia’s stock experienced a 4% increase following Oracle’s optimistic forecast, highlighting the integral role Nvidia plays in supporting AI infrastructure [1]. As a key partner with Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia benefits significantly from the surging demand for AI chips [4]. TSMC’s August sales figures showed a 34% year-over-year increase, demonstrating robust demand for advanced AI chips, further solidifying Nvidia’s market position [1][4]. Nvidia’s GPUs remain a primary choice for enterprises deploying AI applications, reinforcing its dominance in the AI accelerator market, despite increasing competition [2].
revenue potential for nvidia
UBS analyst Karl Keirstead noted that Oracle’s projection of 14 times growth in its cloud infrastructure segment over five years, driven mainly by GPU cloud demand, is a bullish sign for Nvidia and other AI hardware suppliers [1]. Oracle’s planned capital expenditure of $35 billion in fiscal year 2026, primarily for revenue-generating equipment in data centers, signals substantial revenue potential for Nvidia [1]. This investment underscores the increasing demand for Nvidia’s high-performance chips, bolstering its revenue prospects in the rapidly expanding AI market [5].
competitive advantages and challenges
While Nvidia currently holds a strong position in the AI chip market, increased interest in customized AI chips poses a potential challenge [5]. Broadcom’s CEO, Chen Fu-yang, anticipates that AI-related revenue will surpass the total of software and non-AI revenue within two years [2]. Chen also set an ambitious goal of reaching $120 billion in AI revenue by fiscal year 2030, directly linking his compensation to this target [2]. This ambition signals growing competition in the AI chip space, with companies like Broadcom aiming to capture market share by offering customized solutions [5].
broader market trends
The broader market reflects a strong uptrend in AI-related investments. Texas Instruments CEO Haviv Ilan reported that their data center business is experiencing strong growth, with revenue increasing at a pace above 50% [7]. This growth is indicative of the overall expansion in AI infrastructure, where major tech companies are investing heavily in data centers and AI capabilities [4][7]. The shift towards ‘多元化定制芯片方案’ signals a change in the AI infrastructure landscape, further intensified by companies such as Google and OpenAI developing their own AI chips [6].