Signs of accelerating capital spending for artificial intelligence (AI) infrastructure continue to flow. One tech giant astounded investors with its earnings report last night, which is driving shares of AI leader Nvidia (NVDA -0.82%) higher today.
Nvidia stock jumped nearly 5% this morning and remained higher by 4.5% as of 10:52 a.m. ET. Something that Oracle reported in its fiscal 2026 first-quarter release has investors even more optimistic about Nvidia's future.
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Nvidia will continue to benefit from AI capital spending
Oracle said it signed several multibillion-dollar contracts in the first quarter alone. That allowed it to end the quarter with $455 billion in contracted revenue, or what it terms total remaining performance obligations (RPOs). That represents a 359% year-over-year increase.
Much of that will presumably be for infrastructure to expand AI technology. Oracle CEO Safra Catz stated, "It was an astonishing quarter -- and demand for Oracle Cloud Infrastructure continues to build." She added that the company expects to increase its cloud services even further with several additional multibillion-dollar customers over the next few months.
All that computing infrastructure will result in spending for processors from Nvidia and other advanced chip companies. Nvidia shares have pulled back over the past month as investors feared a possible slowdown in AI spending growth. But signs continue to point to accelerating investments in AI.
Oracle also pointed to how it will gain returns on its investments. It expects cloud infrastructure revenue to rocket higher, from $18 billion this fiscal year to $144 billion by 2030. That's another good sign for Nvidia, as large tech companies look for returns on AI investments.
As evidence of those sales gains increases, spending for Nvidia's products will continue to grow. That's a good indication that Nvidia stock will follow.
