Oracle has surged nearly 50% this year, second only to NVIDIA. With the cooperation with Amazon AI a

Since the beginning of 2024, Oracle’s stock price has risen by nearly 50%, second only to NVIDIA among AI concept stocks, becoming the second largest winner after NVIDIA. Oracle’s financial report is undoubtedly the biggest driver of the recent stock price increase. On Monday, the company announced its first fiscal quarter ending in August 2025 after the US stock market closed. On the first trading day after the financial report was released, its stock price rose by 11.4%, leading the chip Cloud Service sector to rebound comprehensively. As of the close of this Thursday, it still rose by 2.67%. Although the upward trend slowed down significantly compared to Tuesday, it has reached a historical high for the third consecutive day.

Why did the stock price of Oracle Bone Script soar?

The current surge in Oracle’s stock price is inseparable from long-term accumulation and recent key catalytic factors.

Cloud business is rapidly rising and becoming a new growth engine

In the past few years, Oracle’s market performance has been stagnant, mainly because it missed the initial development opportunities of Cloud Service. In the early stages of Cloud Service, Amazon AWS, Microsoft Azure, and Google Cloud quickly occupied the market, while Oracle’s transformation was slow. This led to its stock price performance lagging behind other tech giants.

Although Oracle lagged behind in the early opportunities of Cloud Services, the company successfully reversed the situation through strategic adjustments and large-scale investments, gradually becoming one of the important players in the global Cloud Service field. Especially in the enterprise Cloud Service market, Oracle has achieved significant growth with its Oracle Cloud Infrastructure (OCI). The cloud infrastructure business has become an important growth engine for Oracle.

Oracle’s Cloud Service business not only brings new sources of revenue, but also strengthens its competitive position in the global IT Service market. Through focused investment and strategic cooperation in cloud business, Oracle’s market share has increased in recent years, especially in complex application scenarios such as Big data processing and AI Model Training. As more and more enterprises choose to migrate their businesses to the cloud, Oracle’s Cloud as a Service has gradually become an important choice for the enterprise market.

With the rapid development of artificial intelligence technology, there is an increasing demand for large-scale AI Model Training and deployment worldwide. Oracle has successfully seized this market opportunity by combining its cloud infrastructure with AI demand. OCI not only provides powerful computing support for AI models, but also has extremely high stability and security, making Oracle an indispensable partner for global enterprises in the AI development and deployment process.

The new quarterly financial report is impressive, becoming the biggest promoter

Oracle delivered impressive results in the Q1 financial report of fiscal year 2024, becoming the core driving force behind the surge in stock price. In this quarter, Oracle’s total revenue increased by 7% year-on-year, reaching $13.30 billion, exceeding the market’s expected $13.23 billion. In addition, adjusted earnings per share were $1.39, also higher than the expected $1.32. These performance indicators indicate that Oracle has maintained steady growth in the increasingly competitive global Cloud Service market.

Oracle’s Cloud as a Service is the secret to its success. The department’s revenue increased year-on-year by 21.3%, and its cloud business quarterly revenue reached $5.60 billion , far exceeding market expectations. This growth rate highlights Oracle’s rapid rise in Cloud Services and AI, especially against the backdrop of increasing global demand for AI training and data processing. The rapid growth of OCI has become the core highlight of Oracle’s overall business.

The better-than-expected performance of the financial report has strengthened market confidence, and investors are more optimistic about Oracle’s future development prospects, especially the strong performance in the Cloud Service field, which has driven sustained growth. On the first day after the financial report was released, the stock price rose 11.4%, setting the largest single-day increase in recent years.

Competitors become partners, and AI cooperation with Amazon becomes a highlight of the next quarter

Oracle’s partnership with Amazon Web Services is a highly anticipated strategic move in recent years, especially in the increasingly competitive Cloud Services market.

Although AWS is a strong competitor of Oracle in the field of Cloud Services, the cooperation between the two companies in the fields of artificial intelligence and Cloud as a Service marks a further evolution of the market landscape. Through this cooperation, Oracle has enabled its database technology to be deeply integrated with AWS’s Cloud as a Service, especially in the application scenarios of AI training and large-scale data processing. This cooperation provides enterprises with more diversified choices.

The core of this cooperation agreement is that Oracle’s database technology can seamlessly run on AWS infrastructure. Through this cooperation, Amazon’s customers can use the latest Oracle database technology in their existing AWS cloud environment and enjoy simplified database management and support. This not only helps Oracle further expand its market coverage, but also provides new solution options for AWS customers. For Oracle, this cooperation is expected to drive performance growth in the coming quarters, especially as the global demand for high-performance databases and AI applications continues to rise, which will become an important driving force.

In addition to its partnership with Amazon Web Services, Oracle has also actively partnered with other competitors such as Microsoft and Google.

The establishment of these partnerships enables Oracle’s Cloud as a Service to run on multiple mainstream platforms, further enhancing its diversity and attractiveness in the enterprise market. Through these cross-platform collaborations, Oracle has greatly expanded the coverage of Cloud as a Service and enhanced the trust of enterprise users in its Cloud Service solutions.

Especially in cooperation with Microsoft, Microsoft Azure has allowed Oracle’s database technology to run on its Cloud Computing Platform and support the deployment of critical enterprise applications. This cooperation enables Oracle to penetrate more industries, especially in areas such as finance, manufacturing, and healthcare that require complex database management and high-security Cloud as a Service. In addition, Google Cloud also provides more flexible Cloud Service and Data Analysis solutions through cooperation with Oracle, enabling Oracle to further expand its customer base by leveraging Google’s global infrastructure.

This cross-platform Cloud as a Service expansion has brought significant market advantages to Oracle. Compared to other Cloud as a Services that can only run on a single platform, Oracle has given its customers greater flexibility and choice through these collaborations, thereby attracting more enterprise customers to turn to Oracle’s cloud solutions. This multi-platform and multi-cloud strategic layout effectively reduces the migration costs and technical barriers for enterprises when choosing Cloud as a Service, enhances Oracle’s competitiveness, and brings new growth space to its stock price.

Can the stock price reach new highs in the future?

Combined with Oracle’s solid financial performance and strategic layout in the AI field, as well as the impact of the expected interest rate cut by the Federal Reserve, Oracle’s stock price has the potential to reach new highs in the future.

AI strategic layout is comprehensive, bringing long-term competitiveness

Oracle’s strategic layout in the field of artificial intelligence is very comprehensive, covering multiple levels from infrastructure to applications. The company not only provides powerful computing power for large-scale AI models through OCI, but also embeds AI functions into its core enterprise applications and databases. This gives Oracle a unique competitive advantage in the enterprise market, especially in data-intensive industries such as finance, manufacturing, healthcare, and the public sector. Oracle’s AI solutions can meet the needs of enterprises for efficient and automated data processing.

Oracle’s autonomous database is an important part of its AI strategy. The database uses Machine Learning technology to automatically perform tasks such as patching, upgrading, and optimization without human intervention. This greatly reduces the management burden of enterprises and improves the reliability and security of the system. By deeply integrating AI into the database and Cloud Computing Platform, Oracle not only provides customers with more intelligent tools, but also improves overall Operational Efficiency. This AI-driven automation capability is gradually becoming an indispensable part of the global enterprise digital transformation process.

In addition, Oracle’s cooperation with leading AI companies such as NVIDIA and OpenAI has further enhanced its strength in AI technology applications. Through these collaborations, Oracle can provide customers with cutting-edge AI computing resources and development platforms, helping enterprises quickly deploy and train AI models. This powerful AI ecosystem not only brings new revenue growth points to Oracle, but also gives it long-term competitiveness in the future AI wave.

The expectation of the Federal Reserve’s interest rate cut is expected to further assist

The future Monetary Policy of the Federal Reserve, especially potential interest rate cuts, may have a positive impact on Oracle and its stock price. With the reduction of interest rates, technology companies, especially those that rely on capital expenditures, will be able to finance and expand at lower costs. For Oracle, interest rate cuts will help it further expand its investment plans in Data Center and Cloud Infrastructure to meet the growing market demand.

In addition, a low interest rate environment usually favors the performance of high-growth technology stocks, as investors tend to favor companies with long-term growth potential in the pursuit of returns. Oracle is in a trend of rapid growth in global enterprise Cloud Service demand, especially in the context of the increasing popularity of AI technology. With its advanced cloud infrastructure and database technology, Oracle has a significant competitive advantage.

Interest rate cuts may further stimulate corporate spending, which is crucial for Oracle’s business growth. As the pace of enterprise digital transformation accelerates, more and more companies will increase their investment in Cloud Services and AI technology. Oracle, with its comprehensive Cloud as a Service and AI solutions, is expected to benefit significantly from this trend.

The stock valuation is reasonable and there is room for growth

Oracle’s stock valuation appears relatively reasonable in the current market environment, especially considering its strong cloud business growth and comprehensive AI strategy. According to recent financial performance, Oracle’s expected Price-To-Earnings Ratio (P/E) is about 24.74, slightly higher than the industry median of 23.17. However, considering Oracle’s future growth potential, especially in the AI and Cloud Service fields, the market’s higher valuation is reasonable.

Oracle’s remaining performance obligation (RPO) increased by 53% to $99 billion, indicating that the company’s future revenue conversion rate is accelerating. The market generally expects Oracle’s revenue growth to remain at a double-digit level in the coming quarters, especially driven by its cloud infrastructure (OCI) and autonomous database business, which will further enhance overall profitability.

In addition, Oracle’s cash flow is also very healthy, ensuring its ability to continue technological innovation and expand its data center. The company’s investments in AI, Cloud Services, and especially its partnerships with top global companies have further increased its future growth expectations. Therefore, although the valuation of Oracle’s stock is slightly higher than the industry average, considering its long-term revenue growth potential, the market generally believes that the stock still has room for growth.

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What risks does Oracle face?

Macroeconomic uncertainty

As a global tech giant, Oracle’s business is inevitably affected by the macroeconomic environment. Global economic fluctuations may lead to a slowdown in corporate spending, especially in the case of economic recession or increased uncertainty. Enterprises may reduce the budget for IT and Cloud as a Service, delaying digital transformation projects. This will directly affect the revenue growth of Oracle’s cloud and database businesses.

If global economic growth slows down, especially in Oracle’s major markets such as North America and Europe, its customers may reduce their investment in Cloud Services, AI, and other technologies. This macroeconomic uncertainty may weaken Oracle’s revenue growth in the coming quarters and have a negative impact on its profitability. Oracle needs to maintain flexibility, adapt to changes in the economic environment, and ensure that its business can remain stable during economic downturns.

AI demand may slow down

Despite Oracle’s comprehensive layout in the field of artificial intelligence, if the global demand for AI does not meet the expected growth, it may have a negative impact on Oracle. Currently, Oracle’s cloud business and Database System are highly dependent on the rapid development of Big data and AI. If the growth rate of AI demand slows down, companies may reduce their spending on AI projects, which will affect the revenue sources of Oracle’s related businesses.

In addition, the rapid development of AI technology is also accompanied by uncertainty. If the future development of AI technology encounters bottlenecks or enterprises have doubts about the application prospects of AI technology, Oracle may face significant market risks. Especially in the fields of cloud infrastructure and AI Model Training, the innovation speed and Market Share of competitors may pose a threat to Oracle’s market position.

Increased competition

Oracle is facing fierce competition from Amazon AWS, Microsoft Azure, and Google Cloud. These Cloud Service giants have a much higher market share than Oracle and have significant advantages in technology research and marketing activities. With the rapid development of the Cloud Service market, competitors continue to launch new products and services, which puts enormous pressure on Oracle to maintain market share.

Especially AWS and Microsoft Azure, they not only have a wider customer base globally, but also lead in cloud infrastructure, Data Analysis, and AI solutions. Although Oracle has unique advantages in AI and autonomous databases, how to further expand market share in fierce market competition is still a major challenge it faces.

How do investors layout?

Oracle, as a tech giant, has strong long-term investment appeal. Firstly, its business revenue has high stickiness, especially in the enterprise market, where the cost of customers replacing Cloud as a Service and database suppliers is high, which brings stable revenue flow to Oracle. In addition, Oracle’s continuous expansion in the Cloud Service and AI technology fields indicates its huge growth potential in the future.

Oracle’s multi-cloud strategy, global data center layout, and strong AI technology integration capabilities provide the foundation for sustained growth in the coming years. Especially in the context of global enterprises accelerating digital transformation, Oracle’s Cloud as a Service and autonomous databases will continue to bring long-term revenue growth. These factors enhance Oracle’s attractiveness.

However, Oracle’s stock price may be affected by market fluctuations, especially in the case of increased macroeconomic uncertainty. However, with its strong performance in recent financial reports and cooperation with major clients, Oracle’s stock price may continue to rise in the short term. Interested investors can judge the short-term trend of the stock price by paying attention to its quarterly financial reports and cloud business growth data.

For long-term investors, Oracle’s AI and Cloud Service businesses have sustainable growth potential. Investors can consider entering the market when the stock price corrects to seize long-term investment opportunities. With the continuous increase in enterprise demand for Cloud as a Service and AI, Oracle is expected to achieve steady revenue and profit growth in the coming years.

When investing in Oracle, we need to pay attention to the multiple risks it faces, including macroeconomic uncertainty, latent risks of AI technology development, and fierce competition from competitors. To reduce these risks, we should adopt a diversified investment strategy and diversify our investment portfolio into other technology stocks or industries to resist the market risks of a single company.

Overall, Oracle is a worthy investment target. We should regularly evaluate Oracle’s financial performance, technological innovation, and market competition, adjust our investment portfolio in a timely manner to better respond to market changes, and obtain better investment returns on the basis of risk control.