Artificial intelligence-linked stocks were in focus on Tuesday as investors cheered a massive deal between Nebius (NASDAQ:NBIS) and Microsoft (NASDAQ:MSFT) and awaited quarterly results from Oracle (NYSE:ORCL).
Nebius shares soared 55% in premarket trading after the company said it had signed a deal worth $17.4B to provide AI infrastructure to Microsoft over the next five years. The total contract value could expand to $19.4B if Microsoft decides to acquire additional capacity. As part of the agreement, Nebius will deliver dedicated capacity to Microsoft from its new data center in Vineland, N.J., starting later this year.
Microsoft shares rose 0.4% in premarket trading, while CoreWeave (CRWV), which competes with Nebius, rose 5%.
Separately, on Tuesday, CoreWeave launched a venture arm — CoreWeave Ventures — aimed at investing in AI-linked startup.
Nvidia (NVDA) shares rose fractionally in premarket trading after company executives said at an investment conference on Monday that the GPU giant had received licenses for several of its key customers in China for the H20 chip.
“Yes, we did receive a license approval and have received licenses for several of our key customers in China,” said Nvidia’s Vice President and CFO Colette Kress at the Goldman Sachs Communacopia + Technology Conference. “And we do want that opportunity to complete that and actually ship the H20 architecture to them. Right now, there is still in this position right now, a little geopolitical situation that we need to work through between the two governments.”
Snowflake (SNOW) shares rose fractionally after privately-held competitor Databricks confirmed it had closed a funding round that valued it at $100B. The company also said it had surpassed a $4B revenue run-rate during the second quarter, up more than 50% year over year. Databricks added that its AI products recently crossed a $1B revenue run-rate.
Oracle (NYSE:ORCL) shares rose 1.2% in premarket trading as investors and analysts continued to show enthusiasm for the Safra Catz-led company ahead of its fiscal first-quarter earnings. On Monday, numerous Wall Street firms upped their price targets on Oracle, citing expectations of accelerated growth.
Oracle will release its quarterly results after the close of trading. A consensus estimate calls for adjusted earnings per share of $1.48 on revenue of $15.04B.
Kingsoft Cloud Holdings (KC) shares rose 1% after Bank of America upgraded the Chinese tech company to Buy, citing higher growth visibility driven by AI and improving margins.