STORY: Shares of Oracle skyrocketed more than 40% Wednesday morning to hit a record high, after the company said it was seeing a surge in demand for its cloud services from AI firms.
The huge jump in shares put the stock on track for its biggest one-day increase since 1992.
If the gains hold, Oracle’s market value could reach nearly $950 billion, bringing the tech giant closer to the coveted trillion-dollar club.
Oracle reported four multi-billion-dollar contracts with three clients in the latest quarter, highlighting a robust appetite for its cloud services.
The company has struck deals with Amazon, Alphabet and Microsoft to let their cloud customers run Oracle Cloud Infrastructure alongside native services.
The revenue from these partnerships rose more than sixteen-fold in the first quarter.
Analysts flagged Oracle’s role in SoftBank and OpenAI’s Stargate project as another tailwind, giving the company a foothold in the large-scale AI infrastructure project that is expected to channel about $500 billion in spending.
Oracle also supplies cloud services to xAI, the AI startup founded by Elon Musk, a longtime ally of Oracle cofounder and chairman Larry Ellison.
The 81-year-old’s net worth, which is largely built on his 41% stake in Oracle, was up roughly $100 billion to around $400 billion.
According to Forbes data, that makes him the second-richest person in the world, behind Elon Musk.
