Cloud infrastructure stocks rebound on Oracle news
Investing.com -- Cloud infrastructure and data center-related stocks have rebounded in premarket trading on Friday, recovering some losses after a recent selloff tied to financing concerns across the artificial intelligence supply chain.
Several AI-linked infrastructure names posted solid gains, including CoreWeave, Iren, Fermi, Nebius and Applied Digital, as broader risk sentiment improved.
Sentiment improved on Thursday after Micron’s outlook exceeded expectations and was driven by continued demand for memory chips used in data centers.
Meanwhile, Oracle shares, up 5.3% premarket, rose after new details emerged around a U.S. joint venture involving TikTok.
In an internal memo cited by Bloomberg, TikTok CEO Shou Chew reportedly said ByteDance and Oracle had signed binding agreements to create a U.S.-based joint venture that will be majority-owned by American investors, including Oracle.
Reacting to the news, Mizuho analysts said the deal could provide a meaningful boost to Oracle’s non-AI business.
“TikTok signed binding deals with Oracle, Silver Lake, MGX to form US JV majority-owned by US investors,” Mizuho wrote, adding that the agreement “would secure TikTok as a key customer for OCI.”
The deal “could drive meaningful upside for non-AI part of business via durable, higher margin workloads,” stated Mizuho.
