Oracle on the Rise: Gigantic AI Deals Push Oracle Stock to Record Levels

Oracle's shares continued their ascent on Thursday, reaching a new record high, positively impacting the entire technology sector thanks to a boom in the AI cloud business. With a wave of billion-dollar cloud contracts, the company is increasingly approaching the exclusive club of trillion-dollar corporations. The rapid surge in Oracle's corporate shares highlights the current race for computing power, as companies worldwide invest billions to remain at the forefront of the AI race. This development also benefits Oracle co-founder Larry Ellison, whose wealth has significantly increased due to the rise in stock prices and is on track to surpass Elon Musk as the world's richest man. Richard Hunter of Interactive Investor notes that Oracle has triggered a "domino effect" on AI-related stocks through its robust demand forecast. A significant milestone on Oracle's path to success is a recently reported $300 billion agreement with OpenAI, which is likely to become the main source of the company's new revenue. On Wednesday, Oracle’s corporate valuation rose by an impressive 35.9%, reaching $933 billion. Ellison himself saw an increase in his wealth by nearly $100 billion to $392.6 billion, while Tesla CEO Musk continues to lead the Forbes ranking of global fortunes with an amount of $439.9 billion. Other tech giants, such as Nvidia and Broadcom, which provide semiconductors for data centers, also experienced stock gains. These increases were accompanied by a general positive sentiment among Oracle’s industry peers. Oracle's shares, traded with a 12-month price-to-earnings ratio of 45.3 compared to its competitors in the cloud services sector, outperform rivals such as Amazon and Microsoft, which stand at 31.3.