Oracle shares surged more than 35% in early trading Wednesday after the software giant projected massive revenue growth based on contracts tied to artificial intelligence.
Oracle CEO Safra Catz called the just-finished quarter “astonishing” as the company signed “four multi-billion-dollar contracts with three different customers.”
About 40 minutes into trading, shares were at $337.02, up nearly 40%, lifting the company’s market valuation to around $950 billion.
The surge will significantly boost the wealth of Oracle Chairman Larry Ellison, who could potentially surpass Elon Musk as the world’s richest person.
Oracle’s rally also lifted the S&P 500, which rose 0.5% to 6,545.94, pushing the index further into record territory.
The Dow Jones Industrial Average slipped 0.1% to 45,659.71, while the tech-heavy Nasdaq Composite Index advanced 0.3% to 21,950.81.
All three indexes finished at records Tuesday as markets anticipate a likely Federal Reserve interest rate cut next week amid signs of a weakening US employment market.
Those expectations were reinforced by a surprise 0.1% decline in the producer price index in August, according to government data. US consumer price data for the same period will be released Thursday.
AI-related investments have been a major driver of equity market strength in 2025.
Oracle projected that its cloud business revenues would grow 77% in the current fiscal year to $18 billion. In subsequent years, revenues are expected to rise to $32 billion, $73 billion, $114 billion, and $144 billion.
Catz said the company expects to sign “additional multi-billion-dollar” contracts in the coming months.
© 2025 AFP
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