What happened
High-flying tech hardware and software maker Nvidia (NVDA 1.74%) was a standout stock on Wednesday. In contrast to the gloom of the overall market, its shares were a bright light, rising nearly 1% on the day against the S&P 500 index's 0.7% drop. A new tie-up with a storied tech industry titan was at the root of the optimism.
So what
Tuesday afternoon, following a "fireside chat" involving their respective CEOs at a tech industry conference, Nvidia and Oracle (ORCL -1.25%) announced that they are deepening their existing collaboration.
The new arrangement will allow the database solutions king to utilize the full Nvidia-accelerated computing stack for its Oracle Cloud Infrastructure offerings.
While neither company offered any financial particulars of this expansion to their partnership, Oracle did quote Nvidia CEO Jensen Huang: "Accelerated computing and AI are key to tackling rising costs in every aspect of operating businesses."
He added, "Enterprises are increasingly turning to cloud-first AI strategies that enable fast development and scalable deployment. Our partnership with Oracle will put Nvidia AI within easy reach for thousands of companies."
Now what
Investors might have been a bit dismayed that no dollar amount was attached to this news; this makes it tough to gauge its potential impact on Nvidia's fundamentals.
Regardless, it shows that the company is still a leader in the advanced hardware that goes into many cutting-edge computer systems and solutions. Additionally, deepening its involvement with a longtime tech industry powerhouse like Oracle can only burnish its already-solid reputation even more.
