Cloud AI Today – AI Growth Fueled By Cloud Innovation and Demand

The Cloud AI market, specifically within the domain of Artificial Intelligence as a Service (AIaaS), is experiencing robust expansion driven by advancements in cloud infrastructure and the demand for scalable, cost-effective solutions. As organizations increasingly shift to cloud-based AI frameworks, which allow for the outsourcing of AI capabilities without major capital expenditures, there is notable growth driven by the need for quick digital transformation and democratized technology access. Despite data privacy concerns posing challenges, particularly in sectors with strict compliance requirements, the market is bolstered by the integration of generative AI models and industry-specific platforms. This expansion is supported by increased interest from both large enterprises and SMEs in leveraging AI for operational efficiency.

In other trading, Universal Scientific Industrial (Shanghai) was a notable mover up 10% and finishing the session at CN¥33.88, a new 52-week high. At the same time, Celestica lagged, down 13.5% to close at CA$403.89. On Wednesday, the company reported strong earnings growth for Q4 2025, revised its 2026 revenue guidance upwards, and completed a share buyback program.

Celestica’s growth opportunity is driven by surging demand for AI and networking solutions, with significant potential for margin expansion through strategic initiatives. Discover Celestica’s promising future and potential risks in our in-depth narrative.

Explore urgent insights on how the AI revolution is driving global market shifts and growth opportunities in “Market Insights.”

• Alphabet finished trading at $338.25 up 0.7%, hovering around its 52-week high.

• Oracle ended the day at $169.01 down 2.2%. Two days ago, Oracle announced major advancements in cloud-based AI technology for life sciences and secured strategic partnerships with IHG Hotels & Resorts and Alrajhi Medicine to enhance operations using its cloud solutions.

• Microsoft settled at $433.50 down 10%. On Monday, Perplexity moved to access AI models through Microsoft’s Foundry, aligning with Azure’s AI application strategy while maintaining its AWS reliance.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.