Oracle Stock Rises 91% in 2025: Is It Too Late to Buy?

Oracle's stock has surged 91% this year and is up 4% today after news of a pending TikTok deal. The company's cloud infrastructure revenue has grown 55% YoY to $3.3 billion, and management projects OCI revenue will reach $18 billion in FY26. Despite challenges, Oracle's backlog is expected to drive growth, with a $455 billion RPO and a $300 billion deal with OpenAI.

Oracle's stock (ORCL) has surged 91% this year and is up 4% today, following the announcement of a potential TikTok deal. The company's cloud infrastructure revenue has grown 55% year-over-year (YoY) to $3.3 billion, with management projecting Oracle Cloud Infrastructure (OCI) revenue to reach $18 billion in fiscal year 2026 (FY26) Oracle Growth Outlook Highlights Meta’s Cost Challenge in AI Infrastructure^[2]. Despite challenges, Oracle's backlog is expected to drive growth, with a $455 billion revenue pipeline order (RPO) and a $300 billion deal with OpenAI Oracle Surges 43% on AI Cloud Deals, Ellison Nears Musk in Wealth Ranking^[1].

The stock's surge comes on the heels of Oracle's disclosure of four multi-billion-dollar contracts, including a Wall Street Journal report that OpenAI agreed to buy $300 billion in computing capacity from Oracle over five years. This deal is among the biggest ever in cloud services and is expected to contribute significantly to Oracle's new revenue backlog Oracle Surges 43% on AI Cloud Deals, Ellison Nears Musk in Wealth Ranking^[1]. The rally lifted Oracle's market value by about $234 billion to roughly $913 billion, with co-founder Larry Ellison's net worth rising nearly $100 billion to $392.6 billion, closing in on Tesla CEO Elon Musk's $439.9 billion Oracle Surges 43% on AI Cloud Deals, Ellison Nears Musk in Wealth Ranking^[1].

Oracle's partnerships with Amazon, Google, and Microsoft to integrate its cloud infrastructure have also boosted first-quarter revenue. Additionally, the company's role in SoftBank and OpenAI's $500 billion Stargate AI project is seen as a long-term growth driver Oracle Surges 43% on AI Cloud Deals, Ellison Nears Musk in Wealth Ranking^[1]. The stock's jump has also lifted semiconductor suppliers Nvidia, Broadcom, and AMD, whose chips power the data centers behind Oracle's cloud expansion Oracle Surges 43% on AI Cloud Deals, Ellison Nears Musk in Wealth Ranking^[1].

Oracle shares are up 45% in 2025, outpacing both the S&P 500 and the Magnificent Seven tech stocks, as investors bet heavily on AI infrastructure. However, not all tech stocks have benefited from Oracle's growth. Meta Platforms, Amazon.com, and Alphabet fell in response to Oracle's outlook, as their costs are expected to increase due to the company's cloud infrastructure growth Oracle Growth Outlook Highlights Meta’s Cost Challenge in AI Infrastructure^[2].

Oracle's lofty forecasts indicate increased AI spending over the coming years, which could have implications for other AI-focused companies. Meta, one of Oracle's key AI cloud customers, has opted for a hybrid approach to infrastructure, building its own data centers while also renting out capacity from Oracle. This strategy helps Meta manage costs while continuing to scale its access to computing power Oracle Growth Outlook Highlights Meta’s Cost Challenge in AI Infrastructure^[2].

Despite the challenges and increased costs, Oracle's strong backlog and projected growth make it an attractive investment for many. As the company continues to expand its cloud infrastructure and AI capabilities, it is well-positioned to capitalize on the growing demand for these services.