Sept 10 Reuters Oracle shares rose more than 10 on Tuesday as a push to embed AI into its cloud service products boosted its firstquarter results and helped it narrow the gap with market leaders.

Despite being a late entrant to the cloud business, the company39;s rapid AI investments has made its software an attractive option for companies looking to streamline operations.

Revenue from its cloud products, seen as a less expensive option compared to that of Microsoft and Amazon, rose 21 to 5.6 billion the first quarter, while its overall revenue of 13.31 billion beat estimates.

Stifel analysts said Oracle39;s revenue will grow further, thanks to increasing AI infrastructure bookings and its tieups with cloud services.

If current share gains hold, Oracle is set to add around 39 billion to its market value. Its shares have risen more than 32 this year, while Microsoft and Amazon have added 8 and 15, respectively.

The stock is trading at a forward pricetoearnings ratio of 21.30. It was 29.81 for Microsoft and 31.50 for Amazon. At least 10 brokerages have raised their target price for Oracle39;s stock since Monday.

Oracle39;s cloud infrastructure is also powered by Nvidia39;s hardware, which is considered the gold standard for AI chips.

Oracle is also partnering with rival cloud service providers to make it simpler for customers to connect their data across vendors. On Monday, it announced a tieup with Amazon Web Services, after having signed a similar deal with…