Why Oracle Stock Is Jumping Today

This article first appeared on GuruFocus.

Oracle (NYSE:ORCL) shares jumped about 11% in morning trading Monday after D.A. Davidson lifted its rating on the enterprise software company to Buy from Neutral.

The brokerage kept its $180 price target and pointed to improving growth prospects tied to Oracle’s expanding role in artificial intelligence infrastructure and cloud services.

Analyst Gil Luria said Oracle appears positioned to benefit from rising demand for AI workloads, particularly as large technology firms increase spending on data centers and cloud capacity. The firm highlighted Oracle’s growing relevance as customers look for alternatives to hyperscalers.

Oracle has been working to expand its cloud footprint as competition intensifies with Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Google-parent Alphabet (NASDAQ:GOOGL), and Nvidia (NASDAQ:NVDA), which all play central roles in the AI ecosystem.

The analyst also cited Oracle’s exposure to OpenAI partnerships as a potential catalyst, though execution risks remain as spending requirements rise across the sector.

Oracle stock has gained momentum in recent months as investors reassess legacy software companies with credible AI strategies.