On Feb. 16, 1990, Cisco Systems (NASDAQ: CSCO) went public at $18 per share. The then-$224 million company, whose software enabled computer networks to link up over greater distances, was created by two computer support staffers at Stanford University who had been tasked with helping to expand the computer network across campus. Realizing the commercial potential of the "network extension cord" that they had created, they quit their jobs to found Cisco in 1984. The company's routers and switches were in ...

If you look at how AI deals are conducted these days, it seems AI companies and their investors are imitating the circle of life. Only, it’s a circle of profit that ensures the money eventually comes back to their own coffers. Case in point: SoftBank, which is investing tens of billions into OpenAI and committing dozens more to build AI data centers and infrastructure, just launched a joint venture with the ChatGPT maker in Japan that will localize and sell the AI company’s enterprise tech to companies i ...

Core Insights - Major tech companies including Meta, Microsoft, Amazon, and Oracle have announced a $40 billion investment to secure computing capacity for AI, indicating strong confidence in future demand for cloud computing and AI infrastructure [3][7] - The investment is part of a larger trend where tech giants are forming alliances to enhance their capabilities in AI and data center operations [6][7] - Concerns about energy supply and regulatory challenges are prompting tech companies to consider partnerships with energy firms to ensure reliable power sources for their operations [3][9] Investment and Market Trends - The global AI infrastructure spending is projected to reach $400 billion this year, reflecting the rapid growth and demand in the sector [4] - The $40 billion investment by BlackRock, Nvidia, Microsoft, and OpenAI to acquire Aligned Data Centers highlights the escalating competition and consolidation in the data center market [3][7] - There is speculation about potential overbuilding in the data center sector due to multiple inquiries from developers, which could lead to inefficient resource allocation despite the increasing demand for AI-driven computing [10][11] Energy and Infrastructure Challenges - The need for reliable energy sources is becoming critical as AI operations expand, with companies exploring locations near natural gas and oil fields to build data centers [9][10] - The approval process for new energy projects, particularly nuclear, is lengthy, which may hinder the ability to meet the growing energy demands of AI infrastructure [9][10] - The confusion among utilities regarding the actual demand for data centers could lead to overbuilding, as developers may misjudge the market needs based on inquiries [10][11]

Core Insights - Oracle announced four multibillion-dollar contracts related to its artificial intelligence capabilities, significantly impacting its stock value [1] - The stock experienced a remarkable 36% single-day increase, transforming its market position overnight [2] - The company's market capitalization is now over $600 billion, indicating a substantial valuation shift [2] Stock Performance Analysis - The daily chart shows an atypical price movement, with Oracle's stock rising sharply after a prior dip before earnings [3] - The weekly chart lacks strong signals, primarily indicating a significant price increase without further insights [4] - The monthly chart reveals a long-term uptrend that existed before the recent surge, allowing for potential price corrections without breaking the overall trend [6] Historical Context - Historical analysis back to 1995 highlights Oracle's involvement in the dot-com boom, providing context for its current performance [5] - The current price levels appear modest compared to the extreme highs observed during the dot-com bubble, as indicated by the PPO indicator [7]