Why Palantir and These 3 Other Stocks Are Getting an Oracle Earnings Boost

Oracle’s fiscal first-quarter earnings report pointed to surging demand for AI computing vendors. (Michael Nagle/Bloomberg)

The artificial-intelligence trade was alive and well Wednesday after Oracle’s fiscal first-quarter earnings pointed to surging demand for AI computing vendors.

Among the big names on the move, fellow AI cloud company CoreWeave popped 18%, AI chip maker Advanced Micro Devices was up 3.3%, and networking-equipment company Arista Networks was rising 5.9%.

Palantir Technologies also got in on the action. The company, which combines data and AI to streamline operations for commercial and government clients, was climbing 3.2% Wednesday.

Oracle’s revenue and per-share earnings missed expectations Tuesday afternoon, but its contracted backlog of $455 billion more than tripled from the prior quarter, indicating robust demand for AI servers in the cloud. The stock was up 41% Wednesday, putting it on pace to add more than $200 billion in value.

Some of the companies rising Wednesday have exposure not just to AI, but directly to Oracle. Palantir notched a deal last year to provide its software through Oracle’s cloud platform, and AMD said in June that Oracle planned to use its latest AI chips. Arista, a recent Barron’s stock pick, is also a trusted Oracle hardware supplier.

While CoreWeave is a direct competitor for AI cloud contracts, investors likely believe there is more than enough demand to go around.

Write to Nate Wolf at nate.wolf@barrons.com