Oracle shares rocketed nearly 43% to a record high on Wednesday, putting the software giant within reach of the $1 trillion market cap club. The surge comes after Oracle unveiled four multi-billion-dollar contracts, positioning itself as a rising force in the global AI cloud race.
The Wall Street Journal reported that OpenAI has signed a staggering $300 billion contract with Oracle for computing power over five years — one of the largest cloud deals ever inked. Most of Oracle’s newly announced revenue gains stem from this partnership, analysts said.
The stock hit a high of $345.69, set for its biggest one-day percentage gain since 1992. If momentum holds, Oracle will add $234 billion in market value, bringing it to about $913 billion. Shares are already up 45% this year, outperforming the Magnificent Seven tech stocks and the broader S&P 500.
Ellison Closes in on Musk
The rally boosted co-founder Larry Ellison’s net worth by nearly $100 billion, to $392.6 billion, according to Forbes. Ellison, 81, is now within striking distance of Elon Musk, whose wealth stands at $439.9 billion.
AI Cloud Momentum
Oracle’s cloud business has seen explosive growth thanks to partnerships with Amazon, Microsoft, and Alphabet, which now allow customers to run Oracle Cloud Infrastructure (OCI) alongside their native services. Revenue from these collaborations rose 16-fold in Q1.
CEO Safra Catz told investors: “Over the next few months, we expect to sign up several additional multi-billion-dollar customers, and RPO is likely to exceed half-a-trillion dollars.”
Oracle is also a participant in Stargate, the $500 billion AI infrastructure project backed by SoftBank and OpenAI, which analysts say could provide revenues well into the next decade.
Market Impact
The earnings also lifted semiconductor suppliers Nvidia, Broadcom, and AMD, whose shares climbed 2–8% on expectations of higher demand for data center chips. Rival CoreWeave saw its stock jump about 15%.
With Oracle trading at 33.34x forward earnings, it now commands a valuation premium over Amazon (32.34x) and Microsoft (30.83x), underscoring how investors see its AI-driven growth story as one of the strongest in tech.