Korea Investment & Securities said on the 11th that the earnings disclosed by U.S. software corporation Oracle revealed strong growth in demand for artificial intelligence (AI) infrastructure.
On the 10th (local time), Oracle shares surged more than 36% on the New York stock market, marking the biggest gain since 1992. During trading, the stock jumped 43% to as high as $345.72, setting a record high.
Oracle's quarterly earnings announcement served as a catalyst. Oracle said the previous day that its remaining performance obligations (RPO) reached $455 billion, a 359% surge from a year earlier. It also projected that cloud infrastructure revenue in fiscal 2030 will be $144 billion, a tenfold jump from fiscal 2025 ($10.3 billion).
Riding Oracle's tailwind, semiconductor and cloud-related stocks such as Nvidia (3.83%) and Broadcom (9.77%) also rose in tandem. The Philadelphia Semiconductor Index also climbed 2.38%.
Lee Dong-yeon, an analyst at Korea Investment & Securities, said, "Oracle's RPO surprise suggests that investment in artificial intelligence (AI) infrastructure could remain at a high level even after 2026," and added, "A recent concern in tech investment was that even if AI investment continued into next year, the growth rate could slow thereafter, but Oracle's RPO surprise has greatly alleviated these worries."
He also analyzed that, beyond Oracle's positive news, a long-term cloud contract between Microsoft and neo-cloud firm Nevius through 2031, and news of XPU chip development by OpenAI and Broadcom, support the possibility that the AI cycle could be prolonged.
The analyst said, "It is necessary to maintain sustained interest in leading names that build AI infrastructure and have the software capabilities to run it," adding that on hardware he prefers Broadcom and Nvidia, and in software he favors Snowflake and MongoDB.