Oracle Posts Biggest Weekly Gains Since 2001 on Cloud Momentum
Oracle's stock surged nearly 24% this week, marking its most impressive weekly performance in over two decades. The sharp rise came in the wake of a robust earnings report that highlighted strong growth in its cloud computing segment, signaling a significant shift from its earlier struggles.
Cloud Business Drives Unexpected Surge
After years of playing catchup to established cloud giants, Oracle is now carving out its own space by focusing on helping clients operate cutting-edge artificial intelligence workloads. The company's renewed momentum became evident as the stock climbed dramatically in just two days following its quarterly earnings release.
Analysts are taking notice. Joseph Bonner from Argus Research noted, "Oracle is in the enviable position of having more demand than it can fulfill." Reflecting increased confidence, he raised his price target to $235 from $200.
By Friday, Oracle shares hit a record close at $215.22.
Strong Earnings and Optimistic Guidance
Oracle’s latest earnings surpassed expectations on both revenue and profits. CEO Safra Catz projected next fiscal year revenue to top $67 billion, well above the consensus forecast of approximately $65.2 billion. This optimistic outlook underscores Oracle's expanding footprint in cloud infrastructure.
Chairman Larry Ellison emphasized the explosive demand during the earnings call, explaining, "The demand is astronomical, but we have to grow methodically. We can only build data centers and compute capacity so fast."
Massive Investments Fuel Growth Ambitions
Oracle significantly ramped up capital spending to accelerate cloud expansion. In fiscal 2025, the company allocated over $21 billion to data center development—surpassing its total investment from 2019 through 2024. For fiscal 2026, spending is expected to climb to $25 billion.
While Google and Microsoft continue to be major cloud spenders, Oracle’s bold commitment reflects its determination to compete aggressively. Ellison proclaimed, "We will build and operate more cloud infrastructure data centers than all our competitors combined."
Expanding Clientele in AI and Cloud Services
Oracle’s cloud customers now include high-profile players like OpenAI and xAI, both heavily reliant on GPU-driven infrastructure to train advanced generative AI models. The company is also attracting innovative startups such as Physical Intelligence and Vast Data, further broadening its technology ecosystem.
Outperforming the Tech Sector
With a year-to-date increase of roughly 29%, Oracle’s stock is outperforming major tech players and the broader Nasdaq, which has gained less than 1% in 2025. Among leading tech companies, only Meta approaches similar growth with a 17% rise.
Oracle’s impressive comeback underscores how strategic investments and a focus on AI-powered cloud solutions can revitalize even longstanding industry giants.