Oracle Boosts AI Expansion with 50,000 AMD Chips, Stock Surges

Bassyonni

ago 4 hours

Oracle Boosts AI Expansion with 50,000 AMD Chips, Stock Surges

Oracle has unveiled plans to deploy 50,000 AMD chips in its cloud data centers starting in Q3 2026. This initiative will enhance Oracle Cloud Infrastructure (OCI) for clients requiring high-speed computation for complex AI models.

Strategic Partnership with AMD

This rollout represents one of Oracle’s most significant commitments to chip technology. It highlights Oracle’s aim to diversify its AI hardware supply beyond Nvidia. By utilizing AMD’s latest accelerators, Oracle intends to foster a more flexible and cost-effective cloud ecosystem for enterprise AI applications.

Market Response to Oracle’s Announcement

The announcement positively influenced AMD’s stock, which rose by 3.3% in pre-market trading. This increase reflects the market’s confidence in AMD’s position in the AI sector. Demand for data-center accelerators is surging, as cloud providers strive to meet growing needs for AI computing power.

AMD’s recent momentum stems from its Instinct MI300 series.
Analysts believe that partnerships like the one with Oracle could enhance AMD’s market share against Nvidia in the coming years.
Oracle’s stock also rose by 1.1%, demonstrating investor confidence in its AI strategy.

Enhancing Oracle’s AI Infrastructure

This expanded partnership positions Oracle as a key player in AI infrastructure. Ongoing investments in GPU clusters, high-speed networking, and multi-tenant AI environments bolster Oracle’s appeal for enterprise clients interested in hybrid cloud solutions.

Deployment Timeline and Future Details

The phased integration of the AMD chips will commence in Q3 2026 across Oracle’s global data centers. Additional details on performance metrics, customer adoption rates, and regional deployment plans are expected later this year.

The move comes amidst increased spending on AI infrastructure across the cloud sector. Major companies like Oracle, Amazon, and Microsoft are competing to satisfy growing enterprise demand for AI model training and deployment.

Future Outlook for Oracle

Looking ahead, Wall Street analysts have a Moderate Buy consensus for Oracle stock. Current recommendations include 26 Buys, eight Holds, and one Sell. An average price target of $346.63 suggests a potential upside of 12.5% from current levels.

Oracle’s collaboration with AMD marks a significant step in the evolving landscape of AI computing, focusing on not just performance but also on diversity, cost, and accessibility.