Post by : Raman

Photo : Reuters

Oracle, the well-known American enterprise software company, has seen its shares rise sharply, continuing a remarkable run in the stock market. The latest surge has pushed Oracle closer to joining the exclusive trillion-dollar market value club, thanks to huge gains from its artificial intelligence (AI) cloud business. This growth has not only boosted the company but also significantly increased the wealth of co-founder Larry Ellison.

Record Growth Driven by AI Cloud Deals

The recent rise in Oracle’s stock comes as the company secures massive cloud deals with companies investing heavily in AI. These contracts provide the computing power needed for AI operations and have become a major source of revenue. One of the most notable deals includes a $300 billion agreement with OpenAI, a figure that is among the largest in corporate history. Experts believe this deal alone accounts for a significant portion of Oracle’s new revenue.

Richard Hunter, head of markets at Interactive Investor, explained that Oracle has “lit a fire under the rekindled AI trade.” He added that the company’s billion-dollar outlook has created a ripple effect, boosting shares of other AI-related stocks and technology companies.

Market Impact and Tech Sector Gains

Oracle’s stock rose 2% in premarket trading on Thursday, following a record jump of 35.9% the previous day. The surge pushed the company’s market capitalization to a historic $933 billion. The rise has influenced other tech companies as well. For example, Nvidia and Broadcom, which supply semiconductors for data centers, also saw their shares increase. Asian tech stocks similarly experienced gains, reflecting a global market response to Oracle’s success.

Compared to peers like Amazon and Microsoft, Oracle’s shares are trading at a premium. Its 12-month forward price-to-earnings multiple stands at 45.3, while Amazon and Microsoft are at 31.3 and 31, respectively. Analysts say this shows investors are highly confident in Oracle’s future growth, particularly in the AI cloud sector.

Larry Ellison’s Growing Wealth

Larry Ellison, Oracle’s co-founder and chairman, has seen his net worth rise dramatically alongside the company’s stock. His wealth increased by nearly $100 billion, reaching $392.6 billion. Ellison’s gains come mainly from his 41% stake in Oracle. While Tesla CEO Elon Musk still tops global wealth rankings at $439.9 billion, Ellison’s recent surge puts him on track to challenge Musk for the top spot in the coming months.

Why AI Cloud is Transforming Oracle

The AI cloud business is becoming increasingly important for companies worldwide. Businesses are investing billions to secure computing power to build and operate AI systems. Oracle’s cloud services provide these resources, making the company a central player in the AI revolution. By focusing on AI, Oracle is not only increasing revenue but also strengthening its position in the highly competitive cloud market.

Analysts believe that the OpenAI deal and other major contracts show a strong demand for AI computing power. As more companies adopt AI technologies, Oracle’s role in providing cloud services is expected to grow even further.

Oracle’s recent surge in stock value is a clear signal of the power of AI and cloud technology in shaping the future of business. The company’s growth highlights how securing large deals and focusing on emerging technology sectors can transform a company’s market value and the wealth of its leaders.

For investors and tech enthusiasts, Oracle’s performance offers a lesson in the impact of innovation, strategic partnerships, and the rapidly growing importance of AI in the global economy. As Oracle inches closer to the trillion-dollar market club, all eyes remain on the company’s next moves and its continuing influence on the tech sector.

In simple terms, Oracle’s rise shows that companies that invest in new technologies like AI can grow quickly, create jobs, and influence the entire technology market. The story of Larry Ellison’s wealth also reminds us how visionary leadership can translate business success into personal achievement.

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