"OpenAI's growing compute needs have led it to form new partnerships beyond Microsoft, including with Google, signaling unexpectedly strong infrastructure demand."
"Oracle reported a surge in AI-related revenues, with infrastructure growth forecasted to accelerate from 50% to 70%, reinforcing signs of industry-wide AI momentum."
"High model usage retention and ongoing training needs suggest accelerating demand into 2026, contrary to prior Wall Street expectations regarding a pullback in AI spending."
"In the early months of the year, many AI stocks sold off on fears of unsustainable investment in AI; however, demand has since rebounded."
AI stocks have experienced a remarkable rally in June, particularly NVIDIA, which has reached an all-time high amid bullish news from Oracle and OpenAI's new partnership with Google. Despite initial fears of reduced AI spending, Oracle reported a significant rise in AI-related revenues, and expectations for infrastructure growth have increased. Analysts suggest that the ongoing demand for AI, bolstered by high model usage retention, predicts a brighter future for the sector, differing sharply from prior concerns about a downturn post-Deep Seek.
Read at 24/7 Wall St.
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