Oracle (ORCL) Shares Rally 3.18% on AI Cloud Growth, 359% Backlog Surge

Oracle (ORCL) shares surged 3.1772% in pre-market trading on December 5, 2025, as renewed analyst optimism and strategic AI/cloud developments drew investor attention.

Deutsche Bank reinforced its "Buy" rating with a $375 price target, citing Oracle’s expanding AI cloud infrastructure and a $300 billion partnership with OpenAI. The firm highlighted Oracle’s leadership in scaling AI deployments, despite near-term costs, and viewed the recent pullback as a favorable entry point. TD Cowen also reiterated a "Buy" with a $400 target ahead of Oracle’s Q2 earnings report on December 10.

Oracle’s cloud backlog hit $455 billion, up 359% year-over-year, driven by surging demand for AI inferencing infrastructure. The company’s flexible cloud model and partnerships with OpenAI, Meta, and Nvidia position it as a key player in the AI "supercycle." Analysts noted that Oracle’s capital expenditures and RPO growth signal long-term revenue potential, even as free cash flow remains constrained by infrastructure investments.

With 25 of 39 analysts rating Oracle a "Strong Buy," the stock’s trajectory hinges on its ability to convert backlog into revenue. Upcoming earnings and progress in AI infrastructure could further validate its strategic positioning in the competitive cloud market.