Oracle shares surged 14% to breach the $200-mark for the first time on Thursday, after the company raised its annual revenue forecast, driven by strong demand for its AI-related cloud services.

The cloud-services giant is expanding its infrastructure in Germany and the Netherlands as it joins a growing list of U.S. companies seeking to bolster their services in Europe.

Oracle would spend $2 billion in Germany and $1 billion in the Netherlands, the company said in separate statements. Its shares rose 2% in trading before the bell.

Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG.