Oracle's Stock Soars 15% After 300 Billion Dollar AI Deal

In the rapidly evolving landscape of artificial intelligence, significant developments are reshaping the industry. One of the most notable recent events is the signing of a 300 billion dollar computing agreement between Oracle and OpenAI. This agreement, spanning approximately five years, involves Oracle providing OpenAI with a substantial amount of computing power. The deal is one of the largest cloud service contracts in history, underscoring the growing investment in AI data centers despite market concerns about potential bubbles in the AI sector. The contract requires 4.5 GW of electrical capacity, equivalent to the output of more than two Hoover Dams or the power consumption of approximately four million households.

Following the announcement, Oracle's stock price reached an all-time high, marking its best single-day performance since 1992. This surge added 244 billion dollars to Oracle's market value, bringing its total market capitalization to 922.2 billion dollars. Analysts from various financial institutions have praised Oracle's performance, highlighting its leadership in AI infrastructure. Deutsche Bank, for instance, described the results as "truly outstanding" and reiterated its "buy" rating for Oracle's stock, raising the target price from 240 dollars to 335 dollars. Other analysts, including those from D.A. Davidson and Wells Fargo, expressed similar sentiments, noting the significant implications for AI-related businesses.

Further optimism comes from Jefferies, which increased its target price for Oracle to 360 dollars, and Bank of America, which raised its target to 368 dollars. Both institutions emphasized Oracle's strong backlog of unfulfilled orders, solidifying its position as a key enabler in the AI sector. Citigroup went even further, setting a new target price of 410 dollars for Oracle, the highest on Wall Street. Citigroup's analysts noted that Oracle achieved one of the strongest quarterly contract signings in the software industry's history, positioning it as a unique large-scale winner in the AI arena.

Another significant development in the AI sector is the funding round for Perplexity, a generative AI search startup. The company recently secured 2 billion dollars in new funding, bringing its valuation to 200 billion dollars. This follows a previous funding round just two months ago, where Perplexity raised 1 billion dollars at a valuation of 180 billion dollars. Supported by NVIDIA, Perplexity competes with Google by offering conversational user query answers. The company has raised a total of 15 billion dollars since its inception three years ago, with its annual recurring revenue (ARR) approaching 2 billion dollars. This funding comes as Perplexity positions itself as a challenger to Google's search dominance.

In the broader tech industry, Apple's recent product launches have also garnered attention. During its 2025 autumn new product launch event, Apple introduced the iPhone 17 series, AirPods Pro 3, and Apple Watch Series 11. Key features of the new products include the iPhone Air model, blood pressure monitoring in the Apple Watch, and real-time translation capabilities in the AirPods. Analysts from various firms, including Citigroup and Goldman Sachs, have highlighted the potential of these new features to drive a stronger upgrade cycle in the coming year. Despite the initial stock price drop following the launch, historical trends suggest that Apple's stock is likely to recover in the following weeks or months.