Oracle Surges 40% on AI Deals, Nears $1 Trillion Value

Oracle Corporation's stock experienced a significant surge driven by its leadership in artificial intelligence and cloud computing, pushing co-founder Larry Ellison near the top of the world's wealthiest individuals. The company reported a remarkable remaining performance obligation of $455 billion, up 359% year-over-year, with CEO Safra Catz highlighting major AI-focused contracts with firms like OpenAI, Meta, NVIDIA, and AMD. Despite total sales slightly missing analyst expectations, Oracle's cloud offerings grew 28% year-over-year, with multi-cloud database revenue soaring over 1,500%. This surge helped Oracle's shares climb over 40%, positively impacting numerous ETFs. Wall Street responded optimistically, with the S&P 500 nearing all-time highs amid inflation data suggesting a possible Federal Reserve interest rate cut, further supporting market gains. While a recent share price pullback was attributed to buyer exhaustion, long-term growth potential remains strong due to significant AI-related contracts, including a $300 billion computing agreement with OpenAI.