Shares of cloud computing service providers experienced a collective rally in the US market on Monday.

NEBIUS (NBIS.US) surged more than 9% at the open, while CoreWeave (CRWV.US) gained over 7%. Oracle (ORCL.US), Hut 8 (HUT.US), and IREN Ltd (IREN.US) all rose more than 4%.

The overall sector strength was driven by sustained market optimism regarding demand for artificial intelligence infrastructure.

Catalysts for the move include the upcoming inclusion of NBIS and CRWV in the Nasdaq 100 Index, and a shift in the industry's focus from general adoption to the penetration of AI workloads, the commercialization of Model-as-a-Service (MaaS), and capital expenditure conversion efficiency.

Several institutions have recently raised their medium-term growth forecasts for the global cloud market, anticipating that specialized cloud computing service providers will enter a period of significant order growth as enterprises accelerate their transition to AI-driven architectures.

Further boosting sector confidence, NEBIUS recently disclosed a better-than-expected Q2 computing power lease contract renewal rate, while CoreWeave announced a new long-term cooperation agreement with a leading AI company.

Market analysis suggests that cloud service provider valuations remain at historically low to mid-range levels. Coupled with the transition of AI computing demand from concept to actual revenue, the sector is seen as having room for both earnings and valuation recovery.

It has been noted that as major technology companies shift their capital expenditures towards AI infrastructure, mid-sized cloud service providers with cost-effective computing solutions are likely to continue gaining market share.