Analysts at BofA Securities, led by Tal Liani, stated in a report that investors are increasingly focusing on how artificial intelligence is reshaping the competitive landscape among Microsoft, Oracle, CoreWeave, and Nebius, with market share, valuation, and long-term demand being the primary concerns.

Regarding Microsoft, the bank noted that some investors remain skeptical about the adoption rate of Copilot and the company's ability to defend its AI position as tools from OpenAI, Anthropic, and Google gain more traction. BofA believes that Microsoft's broader enterprise software portfolio and cloud infrastructure could still help it bundle AI into existing products and support revenue growth.

For Oracle, analysts mentioned that investors continue to be attracted to its long-term growth prospects but want to see more evidence of data center capacity coming online as scheduled. They indicated that the stock price already reflects many risks, and upcoming capacity increases may alleviate some pressure.

BofA also pointed out that emerging cloud service providers like Nebius and CoreWeave face challenges related to valuation and the sustainability of their business models as hyperscale cloud providers increase their self-built capacity. The bank suggested that Nebius appears to have a clearer software strategy, while CoreWeave still needs to better articulate its long-term vision.