Oracle shares surged 14% on Thursday, crossing the $200 mark for the first time, after the company raised its annual revenue forecast fueled by strong demand for its AI-related cloud services.
Despite ongoing geopolitical tensions and warnings from analysts about potential impacts of U.S. President Donald Trump’s tariffs on Big Tech’s AI investments, confidence in the software sector remains robust.
Oracle recently announced a joint venture called Stargate aimed at providing large-scale computing power to OpenAI, positioning itself as a key player in AI infrastructure.
Michael Ashley Schulman, partner at Running Point Capital Advisors, described Oracle’s transformation as moving from a “stodgy” image to a “cloud-native mage” competing in a fiercely contested market.
For fiscal 2026, Oracle expects total revenue to reach at least $67 billion, according to CEO Safra Catz during a post-earnings call.
The company reported cloud services quarterly revenue growth of 14% to $11.7 billion, with overall revenue of $15.9 billion surpassing estimates of $15.59 billion. Following these results, at least nine brokerages have raised their price targets.
Oracle’s forward price-to-earnings ratio stands at 25.86, lower than rivals Microsoft’s 31.34 and Amazon’s 31.80. Year-to-date, Microsoft’s stock has risen 12.16%, while Amazon’s has fallen 2.8%.
Analysts at Piper Sandler noted that Oracle is experiencing a wave of enterprise popularity unseen since the internet boom of the late 1990s.
At the close, Oracle shares were trading at $201.38.