Nvidia becomes most valuable ever as Oracle's 36% leap reignites Wall Street's AI trade

AI trade hits fresh highs: Nvidia becomes the most valuable company ever, Oracle rockets into the top 10

Nvidia has climbed to the top of market history, surpassing Microsoft and Apple as investors reward clear AI leadership. Meanwhile, Oracle's surge has revived risk appetite across AI-linked stocks.

The AI trade: what moved this week

Oracle jumped 36% on Wednesday, September 10, after reporting a sharp increase in cloud demand from AI-focused customers. The move lifted its market cap to $922 billion, ahead of Eli Lilly, JPMorgan, and Walmart, and within reach of Berkshire Hathaway ($1.06 trillion) and Tesla ($1.12 trillion).

Oracle detailed four new multi-billion-dollar deals tied to a wave of AI infrastructure spending led by companies such as OpenAI and xAI. The print calmed concerns that AI demand might be cooling, and it pulled buyers back into the group.

Nvidia, already crowned the most valuable company, held a $4.3 trillion market value even after a roughly 2% dip following a softer sales outlook on August 27. Tech stocks have stabilized after a volatile stretch and are up more than 16% year to date.

Concentration is back

Eight AI-centric leaders now account for about 30% of the S&P 500. Gains in Nvidia, Microsoft, Broadcom, Meta, Alphabet, Amazon, Palantir, and Oracle explain roughly half of the index's 11% rise so far in 2025.

Liquidity is concentrated too. Over the past five sessions, nine of the ten most-traded stocks were AI-linked. Nvidia led the tape with an average of $29 billion traded per day.

AI demand spills into energy and utilities

The buildout needed to run AI at scale is lifting select non-tech names. Utilities and energy equipment suppliers have rallied as data center power needs swell.

Industrials such as GE Vernova and utilities like Constellation Energy and Vistra have benefited over the past year as investors price in higher long-term electricity demand.

Valuation check

The S&P 500 now trades above 22x forward earnings, its highest level in four years and well above the 10-year average of 18.6x. Tech's forward P/E sits above 28x versus a 10-year average near 22x.

High expectations make earnings delivery and guidance pivotal. Misses or delays in AI deployments can reset multiples quickly.

Key moves and markers

• Oracle: up 36% on the day; market cap at $922B; nearly doubled year-to-date.
• Nvidia: $4.3T market value; remains the top stock by capitalization.
• Palantir: up about 120% in 2025.
• Broadcom: up nearly 60% in 2025.
• "Magnificent Seven" strain: Apple and Tesla have lagged recently despite Tesla's $1.12T value.

What this means for portfolios

• Mind concentration risk: A small group is driving index returns and flows. Stress test exposure to these names and their suppliers.
• Look beyond semis: The AI stack includes networking, memory, cooling, and power. Utilities and energy infrastructure are now part of the thesis.
• Follow the contracts: Multi-year cloud and compute deals (like Oracle's) can reset growth trajectories. Track backlog, capacity, and pricing.
• Respect valuation: With the S&P 500 and Tech trading above long-term averages, earnings quality and cash flow matter more.
• Watch breadth: If gains remain narrow, volatility can rise on any single negative catalyst.

Street read

"Oracle's results reignited interest across AI plays," said Peter Tuz of Chase Investment Counsel. Chuck Carlson of Horizon Investment Services added that Oracle's move shows there is still substantial capital waiting to enter AI-related equities.

What to watch next

• Oracle's execution on new AI cloud contracts and any follow-on deals.
• Nvidia's supply signals, data center lead times, and upcoming guidance.
• Grid upgrades, power pricing, and capacity additions from utilities tied to data centers.
• Shifts in leadership: whether Apple or Tesla can reaccelerate their AI narratives.
• Any cooling in AI workloads or delays in deployments that could hit high-multiple names.

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