{"id":56277,"date":"2025-09-11T01:06:09","date_gmt":"2025-09-11T01:06:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/56277\/"},"modified":"2025-09-11T01:06:09","modified_gmt":"2025-09-11T01:06:09","slug":"oracle-surges-on-ai-cloud-growth-as-customers-race-to-secure-computing-capacity-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/56277\/","title":{"rendered":"Oracle surges on AI cloud growth as customers race to secure computing capacity"},"content":{"rendered":"

Oracle ORCL-N<\/a> shares surged about 43 per cent to a record high on Wednesday, putting the company on track to join the elite trillion-dollar club and propelling co-founder Larry Ellison closer to the top of the world\u2019s richest list.<\/p>\n

The company unveiled four multibillion-dollar contracts on Tuesday amid an industrywide shift, led by companies such as OpenAI and xAI, to aggressively spend to secure the massive computing capacity needed to stay ahead in the AI race.<\/p>\n

The stock was last up 35 per cent, after rising to hit a record high of US$345.69, set for its biggest one-day percentage jump since 1992.<\/p>\n

Separately, The Wall Street Journal on Wednesday reported that OpenAI has signed a contract to purchase US$300-billion in computing power from Oracle over roughly five years, marking one of the biggest cloud contracts ever signed.<\/p>\n

A majority of the new revenue Oracle described on Tuesday will come from the OpenAI deal, the report said. OpenAI did not immediately respond to a Reuters request for comment, while Oracle declined to comment.<\/p>\n

Oracle co-founder and chairman Larry Ellison, 81, whose net worth is largely derived from his 41-per-cent stake in Oracle, saw his fortune rise by about US$100-billion to around US$392.6-billion, according to Forbes.<\/p>\n

He is rapidly closing in on Elon Musk in the race for the title of the world\u2019s richest person. Mr. Musk\u2019s net worth last stood at US$439.9-billion.<\/p>\n

The company will add about US$234-billion to its market valuation, taking the total valuation to around US$913-billion, if gains hold, and bringing Oracle closer to the coveted US$1-trillion club.<\/p>\n

Its shares have risen 45 per cent so far this year, outperforming the so-called Magnificent Seven stocks and the broader S&P 500 index, with investors betting big on AI-driven cloud firms.<\/p>\n

\u201cOver the next few months, we expect to sign up several additional multibillion-dollar customers, and RPO is likely to exceed half-a-trillion dollars,\u201d CEO Safra Catz said during a postearnings call.<\/p>\n

Currently, Microsoft, Amazon Web Services and Google Cloud dominate the cloud computing market with a combined 65-per-cent share, while Oracle, Alibaba, CoreWeave and others hold a smaller slice of the market.<\/p>\n

Oracle\u2019s first-quarter results lifted shares of Nvidia, Broadcom and Advanced Micro Devices, which supply semiconductors used in data centres. Shares of the companies rose between 2 per cent and 8 per cent.<\/p>\n

Competitor CoreWeave\u2019s shares were up about 15 per cent.<\/p>\n

The company has struck deals with Amazon, Alphabet and Microsoft to let their cloud customers run Oracle Cloud Infrastructure (OCI) alongside native services. The revenue from these partnerships rose more than sixteenfold in the first quarter.<\/p>\n

\u201cWhat matters here is that this figure now includes contributions from the Stargate venture and two other big AI players, meaning revenues beyond 2026 go much higher,\u201d said Ben Reitzes, analyst at Melius Research.<\/p>\n

Analysts flagged Oracle\u2019s role in SoftBank and OpenAI\u2019s Stargate project as another tailwind, giving the company a foothold in the large-scale AI infrastructure project that is expected to channel about US$500-billion in spending.<\/p>\n

The company also supplies cloud services to xAI, the AI startup founded by Musk, a longtime ally of Ellison.<\/p>\n

Oracle\u2019s stock is trading at over 33.34 times its 12-month forward earnings estimates, compared with Amazon\u2019s 32.34 and Microsoft\u2019s 30.83.<\/p>\n

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Oracle ORCL-N shares surged about 43 per cent to a record high on Wednesday, putting the company on…\n","protected":false},"author":2,"featured_media":56278,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[262],"tags":[4320,4309,4321,9,4302,4322,995,4301,4314,4315,4311,4303,4300,314,179,2597,18,440,4313,4307,4333,4304,4305,3428,19,17,4310,3521,3136,4323,4306,4328,4329,4331,4326,4330,4324,4327,430,4317,4318,790,4316,4325,4308,82,4319,4312,4222,66,4332],"class_list":{"0":"post-56277","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-alberta","9":"tag-arts-news","10":"tag-bc","11":"tag-breaking-news","12":"tag-breaking-news-video","13":"tag-british-columbia","14":"tag-canada","15":"tag-canada-news","16":"tag-canada-sports","17":"tag-canada-sports-news","18":"tag-canada-trafficcanada-weather","19":"tag-canadian-breaking-news","20":"tag-canadian-news","21":"tag-computing","22":"tag-economy","23":"tag-education","24":"tag-eire","25":"tag-environment","26":"tag-federal-government","27":"tag-foreign-news","28":"tag-globe-and-mail","29":"tag-globe-and-mail-breaking-news","30":"tag-globe-and-mail-canada-news","31":"tag-government","32":"tag-ie","33":"tag-ireland","34":"tag-life-news","35":"tag-lifestyle","36":"tag-local-news","37":"tag-manitoba","38":"tag-national-news","39":"tag-new-brunswick","40":"tag-newfoundland-and-labrador","41":"tag-northwest-territories","42":"tag-nova-scotia","43":"tag-nunavut","44":"tag-ontario","45":"tag-pei","46":"tag-photos","47":"tag-political-news","48":"tag-political-opinion","49":"tag-politics","50":"tag-politics-news","51":"tag-quebec","52":"tag-sports-news","53":"tag-technology","54":"tag-travel","55":"tag-trudeau","56":"tag-us-news","57":"tag-world-news","58":"tag-yukon"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/56277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=56277"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/56277\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/56278"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=56277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=56277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=56277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}