Oracle stocks delivered one of their most remarkable trading sessions in decades after the company announced a massive surge in cloud business contracts. Shares of Oracle jumped more than 36% in a single day, the biggest gain since 1992, adding over $250 billion in market value. The rally not only shocked Wall Street but also pushed chairman Larry Ellison to the top of the world’s wealth rankings, overtaking Tesla CEO Elon Musk.
The surge in Oracle stocks came despite earnings and revenue falling short of Wall Street expectations. The real driver of momentum was Oracle’s unprecedented backlog of cloud contracts, which signaled a powerful long-term growth story tied to artificial intelligence (AI).
Oracle’s Cloud Backlog Boosts Investor Confidence
At the heart of the rally was Oracle’s announcement that its remaining performance obligations (RPO), a key measure of future revenue from contracts, skyrocketed by 360% to $455 billion in the quarter. This massive backlog highlights strong demand for Oracle Cloud Infrastructure (OCI) services and reassures investors that the company is positioned as a central player in the ongoing AI boom.
Oracle projected that its OCI business will grow 77% to $18 billion in the current fiscal year and could reach an astonishing $144 billion by 2030. Analysts said this forecast demonstrates Oracle’s transformation from a traditional software provider into a dominant AI infrastructure leader.
Oracle’s AI Partnerships Fuel Stock Momentum
Oracle stocks gained further momentum from news of its multibillion-dollar contracts with top names in the AI industry. CEO Safra Catz revealed that the company had signed four massive deals in the first quarter, involving partnerships with OpenAI, xAI, Meta, Nvidia, and AMD.
The Wall Street Journal reported that Oracle inked a $300 billion, five-year contract with OpenAI, a development that underscores Oracle’s growing role in the AI ecosystem. These partnerships have positioned Oracle not just as a cloud provider, but as an indispensable part of the global AI supply chain.
Wall Street Reaction to Oracle Stocks
The reaction from Wall Street analysts was overwhelmingly positive. Deutsche Bank analyst Brad Zelnick described the results as “truly awesome,” while William Blair analyst Sebastien Naji called Oracle’s backlog “astonishing.”
Jefferies analyst Brent Thill added that Oracle’s strong performance reinforces “growing AI optimism” across the technology sector. Investors who had been cautious about the sustainability of the AI rally now see Oracle stocks as a key indicator of the sector’s durability.
Oracle’s Investment in AI Infrastructure
Beyond contracts, Oracle boosted its forecast for capital expenditures, increasing it to $35 billion from an earlier $25 billion. This spending will be directed toward expanding its data centers with the latest servers and AI chips to meet rising demand.
This move not only supports Oracle’s growth trajectory but also lifted chip stocks like Nvidia and AMD, which rose 4% and 3.5% respectively in the wake of Oracle’s announcement.
Oracle Stocks and Larry Ellison’s Wealth
The surge in Oracle stocks had another headline-making impact: Larry Ellison became the world’s richest person, surpassing Elon Musk. Ellison’s net worth skyrocketed as Oracle’s market capitalization surged, reflecting the scale of investor enthusiasm for the company’s AI-driven future.
For Ellison, this milestone marks the culmination of decades of building Oracle into a global technology powerhouse. For investors, it is a sign of how rapidly fortunes can shift in the AI-fueled stock market landscape.
Outlook for Oracle Stocks
The question now is whether Oracle stocks can maintain their upward trajectory. While the company faces competition from Amazon Web Services, Microsoft Azure, and Google Cloud, its strategic AI partnerships and unmatched backlog provide a unique competitive edge.
Analysts expect short-term volatility given the stock’s historic single-day jump, but the long-term outlook remains strong. If Oracle can execute on its growth forecasts and continue securing high-profile contracts, Oracle stocks could become one of the biggest beneficiaries of the AI revolution.
For more breaking news on startups, tech, and market trends, visit Startup News.
