Oracle Skyrockets 36% in Record-Breaking Day as AI Cloud Revenue Reaches $455B
Oracle Corp. marked its most significant single-day gain since 1992, with shares soaring 36% to add a whopping $244 billion in market value. This historic surge came on the heels of the company’s announcement of exponential growth projections for its cloud infrastructure business.
The software titan disclosed that it has secured $455 billion in remaining performance obligations. This figure represents a staggering 359% increase from the previous year. Oracle’s cloud infrastructure revenue is projected to skyrocket from $10 billion in fiscal 2025 to an impressive $144 billion by fiscal 2030. This forecast solidifies Oracle’s position as a formidable contender in the AI infrastructure race.
CEO Safra Catz revealed that Oracle has inked four multibillion-dollar contracts with three different customers in the quarter. These include deals with tech behemoths like Microsoft, Google, and Amazon. These customers will leverage Oracle’s capacity, further boosting its market presence.
The rally temporarily propelled co-founder Larry Ellison to the top of the world’s richest person list, surpassing Elon Musk for several hours. Oracle’s market capitalization is now nearing $933 billion, putting it tantalizingly close to the coveted $1 trillion milestone.
Despite falling short of earnings and revenue expectations for the quarter, investors zeroed in on the company’s aggressive AI-driven growth outlook. Analysts have hailed the results as “truly awesome” and “momentous”.