Oracle’s cloud-computing business is growing rapidly as it meets the increasing demand for AI computing capacity. The company’s cloud-infrastructure revenue jumped 52% year over year in the last quarter of fiscal 2025 to $3 billion. Oracle expects this revenue to grow by more than 70% in fiscal 2026 as it builds more AI-enabled data centers.
Oracle’s cloud-software business is also expanding quickly. Cloud-application revenue increased 12% in the fourth quarter to $3.7 billion. Both Fusion Cloud ERP and NetSuite Cloud ERP reached $1 billion in revenue.
This growth helps balance lower revenue from on-premise software licenses and slower growth in hardware and services. Taiwan Semiconductor Manufacturing Company (TSMC) is thriving due to high demand for AI chips. Nearly all AI accelerators powering the AI revolution are made by TSMC.
AI growth fuels Oracle, TSMC
Tech giants are increasingly designing their own AI chips, and TSMC remains their top choice for manufacturing. In the first five months of 2025, TSMC’s revenue increased by more than 42% year-over-year as demand for AI chips soared.
TSMC is investing heavily in new manufacturing facilities. It plans to invest a total of $165 billion over several years in U.S. facilities, including multiple new fabs, advanced packaging facilities, and a research and development (R&D) center. In 2025, TSMC’s global capital spending is expected to reach up to $42 billion.
These investments will support the company’s upcoming process technologies, such as its 2nm-class N2 process and the A16 process planned for 2026. Despite some emerging competition, TSMC is likely to remain the top player in the foundry business. The AI chip market is projected to grow to $500 billion by 2028.
If this estimate is even close to accurate, TSMC will benefit significantly. While being based in Taiwan poses some risks for investors due to recent changes in U.S. trade policy, the company is well-positioned to continue riding the AI wave to much higher revenue in the coming years.
A seasoned technology executive with a proven record of developing and executing innovative strategies to scale high-growth SaaS platforms and enterprise solutions. As a hands-on CTO and systems architect, he combines technical excellence with visionary leadership to drive organizational success.
