Oracle’s Cloud Momentum: Puts Software & Cloud ETFs in Focus

Oracle lit a fire under AI and software shares after guiding to 77% OCI (cloud infrastructure) growth to ~$18B this fiscal year and sketching a path to as much as $144B over the next several years. Management also flagged $455B in remaining performance obligations and a slate of multicloud partnerships (AWS, Microsoft, Google) plus 37 additional data centers—signals that AI compute demand is still accelerating. Oracle’s stock jumped nearly 32% after its latest outlook update, reflecting investor enthusiasm for cloud and AI synergy. Enterprise clients are driving rapid uptake for cloud-hosted AI and analytics, a crucial factor for Oracle and other cloud infrastructure leaders.

ETF Exposure: FCLD & IGV

Two ETFs that closely track the cloud and software industry—Fidelity Cloud Computing ETF (FCLD) and iShares Expanded Tech-Software Sector ETF (IGV)—offer diversified exposure to this trend.

FCLD: Fidelity Cloud Computing ETF

Focused on companies advancing cloud computing, FCLD captures stocks central to enterprise cloud adoption, including hyperscale providers and leading SaaS platforms.

What it owns: A cross-stack take on cloud: Microsoft, Salesforce, Snowflake, ServiceNow, Datadog—plus picks-and-shovels like Equinix and Digital Realty. Oracle shows up here too (~4% weight), so you still get ORCL exposure but with more diversified cloud rails.

Angle: A “full cloud stack” basket—SaaS + observability + storage + data-center REITs—benefiting from the physical build-out that Oracle and others are accelerating.

IGV: iShares Expanded Tech-Software Sector ETF

IGV tracks leading U.S. software companies powering digital transformation, including critical cloud and AI applications.

What it owns: Broad North American software with Oracle as a top holding (~9%), alongside Microsoft, Salesforce, Intuit, ServiceNow, Palo Alto Networks, and Adobe. That gives you direct leverage to Oracle’s cloud re-acceleration and the software layers monetizing AI.

Angle: Cleaner software beta with a heavy tilt toward large-cap platforms powering AI workloads.

What to watch next

Capacity & capex: Oracle’s plan to add 37 more data centers and grow within hyperscaler ecosystems is the near-term swing factor; supply constraints or delays could temper the ramp.

Multicloud traction & backlog conversion: The $455B RPO is eye-popping—watch conversion to revenue and any commentary on AI-specific workloads.

Rates vs. multiples: Higher yields can compress software multiples; IGV is more sensitive than FCLD given its heavier pure-software tilt. (Fund compositions per holdings/issuer data.)

Conclusion

Oracle’s cloud sales momentum is a catalyst for AI and software growth, lifting ETFs such as FCLD and IGV which offer thematic, diversified access to the sector’s leaders. For investors seeking exposure to AI-driven digital transformation, these funds are well-positioned to capture ongoing enterprise demand and market potential.

Quickly compare ETFs FCLD, IGV side by side with our ETF Compare Tool