Oracle Stock Hits Record High as AI Cloud Demand Sparks Massive Growth and Bold Expansion Plans

Oracle Corporation’s shares hit a record high after the company forecasted a 70% surge in cloud infrastructure sales for the current fiscal year. Known historically for its database software, Oracle has been pivoting toward cloud computing, particularly services catering to artificial intelligence (AI) workloads.

The bullish projection sent Oracle’s stock soaring by up to 15% to $201.99, marking its largest intraday gain since September. This surge followed a month of steady gains as investors grew more confident that global trade tensions would not impact the tech sector significantly.

Oracle Secures Key AI Partnerships and Massive Orders, Fueling Future Cloud Growth

Oracle has positioned itself strategically in the booming AI sector by offering high-capacity, AI-specific cloud computing. Competing with established players like Amazon, Oracle has managed to secure substantial partnerships, including with Elon Musk’s xAI and Meta Platforms Inc. One of its most ambitious initiatives, Stargate — a joint venture aimed at providing OpenAI with massive computing power — demonstrates Oracle’s intent to dominate in this space. Despite Stargate still being in its early stages, company leadership believes it will be a major driver of future revenue.

Oracle’s order book is rapidly filling up, with remaining performance obligations climbing to $138 billion, up from $130 billion in the prior quarter. CEO Safra Catz and Chairman Larry Ellison noted a dramatic uptick in demand, with one order requesting “all the capacity” Oracle could provide worldwide. The growing appetite for AI infrastructure has strained Oracle’s supply capabilities, but executives remain confident this is a good problem to have, signaling sustained momentum and future profitability.

Massive Data Center Investments Fuel Oracle’s Growth Amid Soaring AI Cloud Demand

To keep up with soaring demand, Oracle is aggressively investing in global data center expansion. Capital expenditures tripled to $21.2 billion over the past fiscal year and are expected to rise to $25 billion this year. Building state-of-the-art facilities, such as the Stargate center in Abilene, Texas, is resource-intensive, but executives argue it’s essential for meeting growing customer needs. The company sees these infrastructure developments as foundational to maintaining its competitive edge in the AI-driven cloud market.

In its fiscal fourth quarter, Oracle reported an 11% rise in sales to $15.9 billion, exceeding analysts’ expectations. Profit excluding certain items was $1.70 per share, slightly above the $1.64 estimate.

Cloud revenue climbed 27% to $6.7 billion, with infrastructure revenue up 52% to $3 billion, narrowly missing Wall Street forecasts. Analysts attributed the shortfall to supply constraints, not demand. Oracle also added new clients like Temu, a Chinese e-commerce platform, even as existing clients like TikTok face regulatory uncertainty in the U.S.