Oracle’s recent earnings report and highly optimistic forecast for its cloud infrastructure business have triggered a significant rally across the tech sector. The surge temporarily elevated co-founder Larry Ellison to the position of the world’s richest person. The software giant’s positive outlook, which signaled robust demand for its AI infrastructure, also had a ripple effect on other major players. Companies like Nvidia, Dell, and Taiwan Semiconductor Manufacturing Company (TSMC) saw their shares climb significantly, reflecting the market’s enthusiasm for the entire AI ecosystem.According to a report by CNBC, following Oracle’s announcement, its shares jumped 36%, and several other companies with ties to its expansion also saw their stock prices soar.Nvidia, a leader in AI chips and a major supplier for Oracle, saw its stock rise 4%. Meanwhile, TSMC – which manufactures chips for Apple, Google, Qualcomm and Nvidia – climbed over 4% after reporting a 34% increase in August sales.While Broadcom, a key provider of networking gear for AI chips, surged 10%, AMD – Nvidia’s primary competitor in graphics processors – saw its shares increase by 2%. Micron, a manufacturer of memory for advanced AI chips, rose 4%. Super Micro and Dell, which build complete server systems, each gained 2%.Even one of Oracle’s competitors, CoreWeave, a “neo-cloud” company specialising in AI, saw a 17% increase in its stock, boosted by the broader market enthusiasm for AI compute. As Oracle CEO Safra Catz noted, the majority of the company’s capital expenditures are for “revenue-generating equipment that is going into the data centers,” indicating a strong focus on building out its infrastructure.
Larry Ellison becomes world’s richest man
Larry Ellison, Oracle’s co-founder, surpassed Elon Musk to become the world’s richest person. Oracle’s stock soared, increasing Ellison’s net worth by $101 billion in a single day, reaching $393 billion. Tesla’s declining share value contributed to Musk’s drop to $385 billion, ending his reign at the top – though for a short period of time.