Oracle's stock on pace for best week since 2001 on cloud momentum

Oracle shares are connected gait for their champion week since 2001 arsenic Wall Street cheers a beardown net study and bullish comments connected the company's prospects successful unreality computing.

The banal is up astir 24% for the week, with astir each the gains coming successful the 2 trading days aft the company's quarterly net release. The past clip Oracle had a amended week was successful April 2001, successful the midst of the dot-com crash, erstwhile alleged dead-cat bounces were common. The anterior 4th Oracle shares mislaid astir fractional their value.

It's a overmuch antithetic institution today, and portion Oracle was mostly viewed arsenic a precocious entrant into the unreality infrastructure market, the institution has recovered a niche and is seeing accelerated maturation helping clients run artificial quality models.

"Oracle is successful the enviable presumption of having much request than it tin fulfill," Joseph Bonner, an expert astatine Argus Research, wrote successful a enactment to clients connected Friday. He recommends buying the shares and lifted his terms people to $235 from $200.

Oracle roseate to a grounds connected Friday, topping $215.

In the company's earnings report precocious Wednesday, gross and net topped estimates. CEO Safra Catz said income for the caller fiscal twelvemonth should travel successful supra $67 billion, higher than LSEG's $65.18 cardinal consensus.

"The request is astronomical," Larry Ellison, Oracle's president told analysts connected the net call. "But we person to bash this methodically. The crushed request continues to outstrip proviso is we tin lone physique these information centers, physique these computers, truthful fast."

Oracle has been playing catchup successful unreality to rivals Amazon, Google and Microsoft.

In the 2025 fiscal year, Oracle's superior expenditures exceeded $21 billion, which is much than the institution spent from 2019 to 2024. The sum should scope $25 cardinal successful fiscal 2026, Catz said connected the call.

Google anticipates $75 billion successful superior spending this year. Microsoft's people for the fiscal twelvemonth is $80 billion.

Oracle's lawsuit database present includes Meta, OpenAI and Elon Musk's xAI. They're among the companies that necessitate the astir Nvidia graphics processing units to bid generative AI models that make text, images and videos successful effect to a fewer words of quality input.

Startups Baseten, Physical Intelligence and Vast Data are besides unreality clients, Oracle announced this week.

"We volition physique and run much unreality infrastructure information centers than each of our unreality infrastructure competitors combined," Ellison said.

Oracle shares are up 28% truthful acold successful 2025, portion the Nasdaq is astir flat. Among the astir highly valued U.S. tech companies, the adjacent champion performer for the twelvemonth is Meta, which is up 17%.

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