Oracle's Stock Soars 36% on Cloud, AI Outlook

Oracle's stock price surged by 36% on Wednesday, marking its largest single-day gain since 1992. This significant increase was driven by the company's optimistic outlook on its cloud business, which has solidified its position in the AI computing competition. Oracle's market capitalization rose to approximately 933 billion dollars, briefly making its co-founder the world's wealthiest individual.

The historic rise in Oracle's stock price reflects investors' strong confidence in the prospects of its cloud infrastructure business. Prior to Tuesday's close, the stock had already accumulated a 45% gain for the year, indicating market recognition of the data software giant's transformation. Oracle's positive cloud business outlook not only surprised the market but also sparked anticipation for accelerated global AI infrastructure development in the post-ChatGPT era. This news propelled the company's stock price to new heights, with its market capitalization briefly exceeding 9500 billion dollars.

Oracle's impressive performance was further bolstered by its report on the surging demand for AI servers, driven by major cloud providers. The company's revenue from multi-cloud databases, which are in high demand, contributed significantly to this growth. Oracle's stock price climbed by 35.95%, setting a new record for the company. This surge in market capitalization, which exceeded 2300 billion dollars, positioned Oracle ahead of major financial institutions. The company's market value approached the trillion-dollar mark, underscoring its dominant position in the tech industry.

Oracle, known for its database software, has made significant strides in the competitive cloud computing market, competing with industry giants such as Amazon, Microsoft, and Alphabet's Google in the AI computing arena. The company has recently secured a contract with OpenAI, the operator of ChatGPT, to provide 4.5 gigawatts of data center capacity. This capacity is equivalent to powering millions of American households. The five-year contract is valued at 300 billion dollars. Oracle's cloud customers also include NVIDIA and TikTok, owned by ByteDance.

On Tuesday, Oracle reported that its remaining performance obligations (RPO), a key metric for measuring order volume, reached 455 billion dollars by the end of the first fiscal quarter. This figure is more than four times the amount from the same period last year. This scale is approximately four times that of Google's backlog, indicating that Oracle's cloud business growth rate is expected to surpass Google's. This optimistic outlook on the cloud business has significantly boosted investor confidence in Oracle's future prospects.