Oracle Pauses After AI-Fueled Surge Toward $1 Trillion Valuation
Oracle shares fell 4% on Thursday, cooling off after a record-breaking 35.9% rally the previous day that had pushed the company’s market capitalization to $933 billion, edging it closer to the trillion-dollar elite. If losses hold, Oracle’s valuation will settle near $894 billion.
Ellison’s Billionaire Climb
The surge has also boosted co-founder Larry Ellison’s fortune to $371.7 billion, putting him within striking distance of Elon Musk ($441.2 billion) for the title of world’s richest person, according to Forbes.
What Fueled the Rally
Oracle’s rise has been powered by multi-billion-dollar AI cloud deals as companies race to secure massive computing power to lead in the AI arms race.
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On Tuesday, Oracle reported its order backlog was on track to hit $500 billion.
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The Wall Street Journal revealed OpenAI signed a $300 billion cloud deal with Oracle, one of the largest in history.
Market View
Analysts see the pullback as a breather.
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Dennis Dick, chief strategist at Stock Trader Network: “A bit of buyer exhaustion here. I think the ‘buy the dip’ crowd is likely to re-emerge. The guidance was so incredible, hard to think that this story is over.”
Oracle’s stock has nearly doubled in 2025, making it one of the top S&P 500 performers, outpacing even the Magnificent Seven tech giants.
Valuation Check
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Stock price: $314.45
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Median price target: $342 (approx. +9% upside, LSEG data)
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Forward P/E ratio: 45.3 vs. Amazon (31.3) and Microsoft (31).
Oracle’s premium valuation reflects investors’ conviction that its AI-powered cloud expansion will continue to drive outsized growth, even as short-term pullbacks test market momentum.
