Cloud Computing

words.U.S. AI‑related stocks fell on Friday, extending a three‑day decline. Oracle dropped over 2% after Thursday’s 11% plunge from revenue that missed forecasts, pulling down peers like Micron and CoreWeave. Despite strong demand for AI infrastructure, Oracle’s $16.06 billion revenue fell short of expectations, raising concerns about its debt‑financed AI‑cloud expansion and the tight GPU ecosystem. Morningstar cut Oracle’s fair‑value target to $286 but still sees the shares as undervalued. Market focus now shifts to next week’s earnings for signs of sustainable AI growth.

.Oracle’s shares fell over 12% after the company posted Q4 revenue of $16.06 billion, missing forecasts despite strong AI‑infrastructure demand. The miss dragged down other AI‑related stocks such as Nvidia and Microsoft. Oracle recently raised $18 billion in bonds and secured a $300‑billion partnership with OpenAI, but faces investor concerns over a heavy debt load and aggressive capex, now projected at $50 billion for the year. Analysts warn the firm must monetize AI services profitably to justify the borrowing and sustain shareholder value.

.Microsoft announced a $17.5 billion, four‑year investment in India’s cloud and AI infrastructure, the largest U.S. tech commitment in Asia. The funds will expand hyperscale data centers, embed AI services in national platforms, and train 20 million Indians in AI by 2030. Alongside Google’s $15 billion and AWS’s $8 billion pledges, the move aims to give Azure a first‑mover advantage and support India’s sovereign digital ecosystem.

words.Raytheon, an RTX business, has teamed with Amazon Web Services to speed satellite data processing and command‑and‑control for government and commercial customers. The partnership will migrate workloads to AWS, using AI/ML tools (SageMaker, Bedrock), edge‑centric Outposts, serverless pipelines, and modular, software‑defined constellation management. Goals include cutting mission‑cycle costs by up to 40%, boosting agility, and meeting DoD “cloud‑first’’ requirements while maintaining high security. Early pilots focus on rapid‑refresh imagery pipelines and autonomous satellite constellation operations.

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U.S. markets closed for Thanksgiving and are set to finish November in the red, ending a six‑month rally for the S&P 500 and Dow and a seven‑month gain for the Nasdaq, as higher‑for‑longer Fed rates, inflation worries, and a tech‑earnings divide weigh on stocks. Futures are flat, Asian markets are mixed, and the Nikkei rose on hot inflation data. Meanwhile, the U.S. will cut benefits for non‑citizens, South Korea sanctioned a Cambodian fraud group, and Russia signaled openness to peace talks. Europe’s strict AI regulations are creating niche opportunities in edge‑computing, secure‑cloud services, and green‑energy‑powered data centers, attracting investor capital.

Alibaba’s fiscal second-quarter revenue exceeded expectations, driven by a 34% surge in cloud computing revenue attributed to AI investments. Cloud Intelligence Group saw triple-digit growth in AI-related product revenue for the ninth consecutive quarter. Despite a drop in overall profitability due to investments in quick commerce, Alibaba’s shares rose. The company plans increased capital expenditure on AI infrastructure. Qwen, Alibaba’s ChatGPT competitor, achieved over 10 million downloads in its first week. Quick commerce emerges as a strategic pillar with ambitious GMV targets.

Alibaba Group (BABA) reported its Q3 2025 financial results, showcasing increased revenue (5% YoY, 15% excluding disposed businesses) but decreased profitability due to strategic investments in AI and cloud infrastructure. AI product revenue saw triple-digit growth. The company’s focus is on long-term value creation through AI technologies and expanding its consumption platform. Key segments like China e-commerce and Cloud Intelligence showed strong revenue growth, particularly fueled by AI. Alibaba is actively repurchasing shares, signaling confidence in its future.

Google plans to double its AI server capacity every six months, potentially increasing it 1000-fold in 4-5 years. This expansion, backed by strong financials and a $93 billion capital expenditure forecast, reflects Google’s confidence in AI’s long-term value. Google emphasizes that infrastructure investment drives revenue, citing its cloud operations. Advances in TPUs and LLMs enhance efficiency. Industry experts agree that robust IT infrastructure is crucial for successful AI deployment, as inadequate systems hinder AI performance. Major technology providers are investing heavily in AI infrastructure to deliver scalable AI solutions.

Tencent’s Q3 2025 earnings exceeded expectations with a 15% revenue increase, driven by AI advancements in advertising and gaming. Revenue reached 192.9 billion yuan, with operating profit at 63.6 billion yuan. Domestic gaming grew 15%, boosted by successful game launches, while international gaming surged 43%. Tencent is investing heavily in AI, including its HunYuan model, and expanding into European cloud computing, aiming to compete with industry leaders. Year-to-date, Tencent’s stock has increased 56.7%.

Google’s Private AI Compute is a new cloud-based system aiming to balance powerful AI with user privacy by replicating on-device data security within a cloud environment. Similar to Apple’s approach, it addresses the challenge of providing computationally intensive AI while protecting data confidentiality. The system uses Google’s infrastructure, including TPUs and TIEs, encrypted connections, and Zero Access assurance to secure data processing. It enhances features like Magic Cue and Recorder, offering faster, more personalized results. Google intends Private AI Compute to unlock a new generation of privacy-centric AI tools.