Gotrade News - Major technology stocks posted a sharp rally this week as investors rotated back into artificial intelligence infrastructure plays amid improving geopolitical conditions. The surge was driven by a wave of multibillion-dollar AI cloud deals that confirmed an accelerating capital expenditure supercycle across the sector.
Key Takeaways: - Oracle climbed 27% in one week on multicloud database revenue growth of 531% and a 1.2-gigawatt energy partnership with Bloom Energy - CoreWeave gained 15% after signing a $21 billion compute supply deal with Meta through December 2032 - Global AI data center investment continues to surge, with Nebius approaching $50 billion in contracted backlog for 2027-2031
This Week's Tech Stock Rally
Improving Middle East peace prospects and falling oil prices triggered a decisive rotation out of defensive positions and into growth stocks last week. Companies tied directly to AI cloud infrastructure buildout captured the strongest capital inflows as investors sought exposure to expanding order books.
Oracle led the large-cap gainers with a 27% jump to $175.06 per share in just one week of trading. According to Motley Fool, Oracle's multicloud database revenue grew a staggering 531% in the quarter ended February 28.
The multicloud revenue explosion reflects Oracle's aggressive push to win enterprise customers away from single-provider cloud architectures. Large enterprises increasingly demand the flexibility to run AI workloads across AWS, Azure, and Oracle Cloud simultaneously, and Oracle's database integration layer makes that transition seamless.
Oracle also expanded its strategic partnership with Bloom Energy through a 1.2-gigawatt fuel cell contract designed to power its cloud data centers. The company holds warrants for over 3.5 million Bloom Energy shares, directly aligning its energy procurement strategy with long-term capacity expansion plans.
This energy partnership gives Oracle a critical competitive edge as data center power shortages emerge as an industry-wide bottleneck globally. Companies that can secure guaranteed power capacity will hold a structural advantage that competitors cannot replicate quickly through spot market purchases.
Additionally, Oracle announced a new collaboration with Amazon Web Services for AI database integration across both cloud platforms. This move further strengthens Oracle's position as the dominant cross-platform database provider in an era when multicloud architecture is becoming the enterprise standard.
CoreWeave rose 15% to $116.85 after securing a landmark $21 billion compute supply deal with Meta extending through December 2032. This single contract represents one of the largest GPU infrastructure commitments in the industry's history and locks in revenue visibility for over six years.
CoreWeave also announced a separate multiyear compute agreement to support Anthropic's Claude AI model development. Multiple Wall Street analysts responded with price target upgrades following the back-to-back contract announcements that validated the company's GPU-as-a-service business model.
Credo Technology was the week's standout performer with a 34% surge to $160.50, pushing its market capitalization to $30 billion. Its acquisition of DustPhotonics significantly expands Credo's silicon photonics capabilities, which are critical for high-speed data center interconnects.
Credo management projects optical revenue will exceed $500 million by fiscal 2027 as demand for optical interconnect technology scales. AI data centers require exponentially faster chip-to-chip communication speeds that traditional copper connections simply cannot deliver at the distances modern facilities require.
Global AI Cloud Expansion
Beyond the US equity rally, AI cloud infrastructure investment is scaling at an unprecedented pace across multiple continents simultaneously. Nebius, a company that emerged from the Yandex restructuring in 2024 under CEO Arkady Volozh with $2.5 billion in initial capital, is now approaching $50 billion in contracted backlog for the 2027-2031 period.
According to Motley Fool, Nebius secured a $19.4 billion contract from Microsoft in September 2025 as its first major cloud infrastructure deal. Its Meta partnership is even larger, reaching up to $27 billion total, comprising $12 billion in dedicated capacity commitments and up to $15 billion in additional flexible capacity.
NVIDIA made a $2 billion direct equity investment in Nebius as a strategic endorsement of the platform's capabilities. This backing from the world's leading AI chip company sends a powerful signal to the market about Nebius's execution potential and technology roadmap.
Nebius revenue is projected to leap from $530 million in 2025 to between $3 billion and $3.4 billion in 2026, representing roughly 6x year-over-year growth. Adjusted EBITDA margins are expected near 40%, demonstrating strong operational efficiency for a cloud platform that has only been operating independently for two years.
The company's data center capacity targets illustrate the sheer scale of infrastructure buildout underway across the global AI industry. Nebius plans to expand from 170 megawatts at end of 2025 to between 800 megawatts and 1 gigawatt by end of 2026, with capital expenditure of $16 billion to $20 billion allocated for 2026 alone.
In the Asia-Pacific region, Australia's NextDC is raising A$2.2 billion through a combination of share entitlement offers and hybrid securities to fund its own data center expansion. According to Investing.com, NextDC's contracted utilization surged 60% since December to reach 667 megawatts as of March 31.
NextDC's forward order book rose 83% to 544 megawatts, reflecting accelerating demand from hyperscale cloud providers and AI-focused enterprise customers. Capital expenditure for fiscal 2026 is targeted at up to A$3 billion, with the S4 facility in Western Sydney serving as the flagship project.
The investment surge spanning three continents signals that AI cloud infrastructure demand remains far from its peak. Companies like Oracle, CoreWeave, and AMD are well-positioned to capture outsized revenue growth as this capital expenditure supercycle accelerates through 2027.
Investors should note that current valuations already reflect high growth expectations across the AI infrastructure sector. Selectivity toward companies with secured long-term contracts and clear revenue visibility will be essential for navigating this rally as it matures.
Sources: - Motley Fool - Why Oracle, CoreWeave, Credo Top Tech Stocks Are Up - Motley Fool - Nebius Has Landed $46 Billion in AI Cloud Deals - Investing.com - Australia's NextDC to Raise A$2.2 Bln
