<div id="readability-page-1"><p><strong>Nvidia</strong> <span>(NVDA<span> 0.28%</span>)</span> stock just hit new all-time highs. But there's a catch: Nvidia's latest rise has nothing to do with the company itself, at least not directly. Instead, there's another AI stock that is causing the entire industry to rise in valuation.</p>  <h2>News from Oracle is fueling Nvidia's stock price</h2> <p>Amazingly, no company with a market cap north of $500 billion has ever seen its stock price rise by more than 30% in a single trading day. But that's exactly what happened this week with <strong>Oracle</strong> <span>(ORCL<span> -4.60%</span>)</span> after the company announced blockbuster earnings with incredibly optimistic forecasts for AI infrastructure demand. </p> <p>According to Oracle's CEO, the firm inked four mega contracts in the first quarter, bringing its backlog to more than $450 billion -- four times what it was just a year ago. Oracle Cloud Infrastructure -- a division directly exposed to rising AI spending -- is expected to grow revenue by 77% to $18 billion from the previous year. Most impressively, that division is expected to reach $144 billion in revenue by 2030.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjkzOTMvZ2V0dHlpbWFnZXMtMjE0OTUzMDk5My0xMjAweDY3NS0xMjg1NTRlLTIuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjkzOTMvZ2V0dHlpbWFnZXMtMjE0OTUzMDk5My0xMjAweDY3NS0xMjg1NTRlLTIuanBnJnc9NzAw"/></p><p>Image source: Getty Images.</p> </div> <p>The news is clear for Nvidia investors: Spending on AI technologies continues to grow rapidly industrywide. Oracle's rosy long-term forecast also adds huge momentum for Nvidia's growth prospects considering Nvidia makes and sells the top-rated GPUs: critical components that power nearly every AI process. Good news for Oracle on this front should also be good news for Nvidia, hence Nvidia's rising share price this week.</p>                                                                            </div>

NVDA

ORCL

NVDL

07788

07388

NVDY

NVDD

NVDX

NVDQ

SOXL

<p>Nvidia's stock has reached all-time highs, driven not by its own performance but by Oracle's recent announcement of strong earnings and optimistic forecasts for AI infrastructure demand. Oracle's CEO revealed significant contracts and a backlog of over $450 billion, indicating a surge in AI spending. This positive outlook for Oracle boosts Nvidia's growth prospects, as it produces essential GPUs for AI processes, leading to an increase in Nvidia's share price.</p>

- Nvidia's stock has reached new all-time highs, driven by news from Oracle rather than Nvidia's own performance.  
- Oracle's recent earnings report and optimistic forecasts for AI infrastructure have significantly boosted its stock, leading to a 30% increase in a single trading day.  
- As Oracle's growth in AI spending positively impacts Nvidia, the overall industry outlook for AI technologies remains strong.  

1 Surprising Reason Nvidia Stock Just Hit All-Time Highs