Core Viewpoint - The article highlights the significant rise of "AI shovel sellers," particularly focusing on the second-tier players, Oracle and Broadcom, as they benefit from the AI boom and the increasing demand for cloud services and chips [3][5]. Group 1: Oracle's Performance - Oracle's recent earnings report showed adjusted revenue of $14.93 billion and earnings per share of $1.47, slightly below market expectations, yet the stock surged 28% post-announcement, marking its largest single-day gain since 1999 [7]. - The explosive growth in Oracle's Remaining Performance Obligations (RPO), which increased by 359% year-over-year to $455 billion, indicates strong future revenue potential [7][9]. - Oracle's cloud infrastructure revenue reached $3.3 billion, a 55% year-over-year increase, while total cloud revenue (IaaS + SaaS) hit $7.2 billion, growing 28% [8]. Group 2: Broadcom's Position - Broadcom is seen as a hidden giant in the AI space, with its ASIC chips complementing NVIDIA's GPUs, focusing on specific inference tasks and data center networking [14][16]. - Broadcom's recent quarterly revenue was $15.95 billion, a 22% year-over-year increase, driven by AI business and VMware integration [18]. - The AI segment contributed $5.2 billion in revenue, reflecting an 8% quarter-over-quarter growth, with major clients including Google, Meta, and ByteDance [19]. Group 3: Market Trends and Outlook - The AI investment trend is expected to continue driving stock market indices higher, with the S&P 500 reaching new highs despite seasonal effects typically unfavorable in September [3][23]. - Analysts predict a 7% growth in earnings per share for the S&P 500 this year and next, supported by a strong financial environment and ongoing AI investment enthusiasm [24].

Group 1 - The core focus of the article is the significant rise in AI-related stocks, particularly the "second-tier" companies like Oracle and Broadcom, which are benefiting from the AI boom and the demand for cloud services and chips [2][3][6] - Oracle's recent performance has been impressive, with a revenue of $14.93 billion and a 359% year-on-year increase in remaining performance obligations (RPO), indicating strong future revenue potential [6][8] - Oracle's cloud business is a key growth driver, with IaaS revenue reaching $3.3 billion, a 55% year-on-year increase, showcasing its transition from traditional software to AI infrastructure [6][7] Group 2 - Broadcom is positioned as a complementary player to NVIDIA, focusing on ASIC chips and data center networking, with a significant portion of its revenue coming from AI-related business [11][14] - Broadcom's recent quarterly revenue reached $15.95 billion, a 22% year-on-year increase, driven by AI business and VMware integration, with AI revenue contributing $5.2 billion [14][15] - The shift of VMware to a subscription model has improved revenue stability for Broadcom, with software now accounting for over 40% of total revenue [15] Group 3 - The overall sentiment in the market remains bullish, with the S&P 500 reaching new highs, driven by the AI investment wave and expectations of continued earnings growth [16][17] - Analysts highlight the importance of monitoring key market levels, indicating a cautious yet optimistic outlook for the stock market amid potential Federal Reserve policy changes [17]

Group 1: AI Market Trends - The recent surge in AI-related stocks has seen daily increases of 20%-40%, with companies like Broadcom and Oracle emerging as key players in the "AI gold rush" [1][2] - The "selling shovel" strategy indicates that companies providing essential infrastructure for AI, such as Oracle and Broadcom, are benefiting significantly from the current market dynamics [1][2] Group 2: Oracle's Performance - Oracle's recent earnings report showed adjusted revenue of $14.93 billion and earnings per share of $1.47, slightly below market expectations, yet the stock surged 28%, marking its largest single-day increase since 1999 [4] - The explosive growth in Oracle's Remaining Performance Obligations (RPO), which increased by 359% year-over-year to $455 billion, highlights its future revenue potential [4][6] - Oracle's cloud infrastructure revenue reached $3.3 billion, a 55% year-over-year increase, indicating a successful transition from traditional software to AI infrastructure [5] Group 3: Broadcom's Position - Broadcom's revenue for the quarter was $15.95 billion, a 22% year-over-year increase, driven primarily by its AI business and VMware integration [14] - AI revenue for Broadcom reached $5.2 billion, with significant contributions from major clients like Google, Meta, and ByteDance, indicating strong demand for its ASIC solutions [14][15] - The shift towards ASICs over GPUs is becoming mainstream, with Broadcom positioned as a key player in this transition, particularly in the context of large-scale cloud service providers [13][12] Group 4: Market Outlook - The AI investment trend is expected to continue driving stock market growth, with the S&P 500 reaching new highs amid a favorable financial environment [16] - Analysts predict a 7% growth in earnings per share for the S&P 500 this year, supported by strong corporate earnings despite high valuations [16]