Wall Street’s “AI trade” has pushed the market to record highs, with Oracle’s shares soaring 36% after a demand surge from AI firms for its cloud services, raising its market value to $922 billion, surpassing Eli Lilly, JPMorgan Chase, and Walmart.

Tech companies like Oracle, Broadcom, and Palantir continue to thrive as AI dominates markets, even as Apple and Tesla stumble. AI chip leader Nvidia became the world’s most valuable company, beating out Microsoft and Apple in the race for AI dominance.

Oracle’s market value is now among the top 10 on Wall Street, joining leaders in AI like Nvidia, Microsoft, Alphabet, and Amazon. Despite a dip in Nvidia’s stock price post-sales forecast, its market value remains at $4.3 trillion, with tech shares steadying after last month’s wobble.

Riding the AI wave, Oracle secured multi-billion-dollar contracts in response to companies like OpenAI and xAI aggressively spending to meet AI computing demands. The U.S. stock market’s top AI-related companies now make up nearly 30% of the S&P 500, driving the index’s gains.

AI-related companies have been key contributors to the S&P 500’s recent gains, with tech giants like Nvidia, Microsoft, and Amazon accounting for half of the index’s 11% increase this year. In the past five trading days, AI-related stocks have dominated Wall Street’s most traded list, with Nvidia leading the pack.

The AI stock surge has extended beyond tech, boosting non-tech sectors like utilities and power equipment companies. Industrial firms like GE Vernova and utilities like Constellation Energy have seen substantial gains, benefiting from the AI frenzy fueling energy demand for technology.

The AI craze has propelled the U.S. stock market to historically high valuations, with the S&P 500 trading at over 22 times expected earnings, its highest in four years. Tech, with the heaviest S&P 500 weighting, has a forward P/E over 28 times, well above its 10-year average, reflecting the AI trade’s impact.

With Oracle’s stock doubling in price this year and other tech giants like Palantir and Broadcom seeing significant increases, the AI trade continues to attract investors. Chuck Carlson, CEO of Horizon Investment Services, notes the ongoing momentum and interest in funneling money into the AI sector.

Read more at Yahoo Finance: Oracle’s blockbuster surge shows AI trade’s growing influence on market