Oracle Adds $30 Billion in AI-Cloud Contracts as Backlog Hits $664 Billion

Microsoft added a fourth Indian cloud region Monday as its Hyderabad-based India South Central facility went live, with shares essentially flat on the news. The new region brings three availability zones together with Azure and Microsoft Foundry services, giving the company another base for enterprise workloads and AI deployment in one of its fastest-growing strategic markets. Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among the early customers named by Microsoft, which is pitching Hyderabad as infrastructure not just for India but for South Asia and other developing markets. The site uses zero-water cooling, addressing a major local infrastructure constraint, though Microsoft has not disclosed the site's megawatt capacity, server count or standalone revenue target. Microsoft's $20.5 billion investment commitment applies to its broader India expansion rather than this single data-center region. The stock trades 15.83% below its $586.29 GF Value estimate.

Qualcomm shares jumped approximately 7% to $190.085 after the chip designer disclosed an AI-infrastructure partnership with Amazon that could see the e-commerce and cloud giant purchase as much as $60 billion of Qualcomm products. Under the arrangement, Amazon would receive purchase-linked warrants valued at roughly $4 billion, equivalent to about 6.7% of the potential $60 billion purchasing ceiling. The two companies are also building custom inference silicon and optical connectivity capable of reaching 1.6 terabits per second. The deal gives Qualcomm a credible path to becoming a larger supplier inside hyperscale AI infrastructure rather than remaining overwhelmingly tied to mobile chips. At $190.085, Qualcomm trades 8.3% above its $175.52 GF Value estimate, suggesting the market is already pricing in part of the Amazon opportunity.

Broadcom projected $21.7 billion in fiscal fourth-quarter AI semiconductor revenue, a forecast that would lift AI chips to roughly 62.4% of companywide sales. The custom-chip and infrastructure-software maker said AI semiconductor revenue surged 221% to $16.7 billion in the third quarter, about 56.4% of its $29.59 billion in total sales. Management now expects companywide fourth-quarter revenue of approximately $34.8 billion alongside a 66% non-GAAP operating margin. Shares gained approximately 0.2% to $358.13, a price that sits 12.42% below the $408.91 GF Value. The company's growth remains tied to custom accelerators and high-speed networking, deepening its exposure to a relatively small group of hyperscale customers.