How Oracle Is Boosting Nvidia and Chip Stocks

Semiconductor stocks surged on Wednesday after $NVIDIA (NVDA.US)$ 's CEO Jensen Huang emphasized strong demand for AI chips. KeyBanc analyst John Vinh explained the recovery following Nvidia’s 8% intraday rise, attributing it to an overreaction to earnings, though the AI trade remains strong.

Oracle played a key role by reporting accelerating AI growth and announcing a doubling of capital expenditures next year. This reassured investors that AI investments are far from over.

Vinh highlighted $Oracle (ORCL.US)$ , $Advanced Micro Devices (AMD.US)$, $Marvell Technology (MRVL.US)$, $Broadcom (AVGO.US)$ , and $Cirrus Logic (CRUS.US)$ as significant players in the AI space. He expects robust spending on data centers and AI infrastructure into 2025, driven by Nvidia’s next-gen platform, Blackwell, which will drastically reduce costs for hyperscalers.