{"id":133727,"date":"2025-09-10T12:35:07","date_gmt":"2025-09-10T12:35:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/133727\/"},"modified":"2025-09-10T12:35:07","modified_gmt":"2025-09-10T12:35:07","slug":"oracle-surges-on-ai-cloud-growth-as-customers-race-to-secure-computing-capacity","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/133727\/","title":{"rendered":"Oracle surges on AI cloud growth as customers race to secure computing capacity"},"content":{"rendered":"

Oracle shares (ORCL-N<\/a>) soared about 33 per cent before the bell on Wednesday after the company pointed to a demand surge for its cloud services from AI firms, underscoring its deeper push into the backbone of artificial intelligence systems.<\/p>\n

The surge in Oracle\u2019s cloud business reflects a broader shift in the industry, with companies such as OpenAI and xAI scrambling to secure massive computing capacity needed to stay ahead in the AI race by boosting spending to hundreds of billions of dollars annually.<\/p>\n

The company will add about US$234-billion to its market valuation, taking the total valuation to around US$904-billion, if premarket gains hold, taking Oracle closer to the coveted US$1-trillion-dollar club.<\/p>\n

Its shares have risen 45 per cent so far this year, outperforming stocks in the so-called Magnificent Seven and the broader S&P 500 index, with investors betting big on AI-driven cloud firms. <\/p>\n

Oracle\u2019s results lifted shares of Nvidia, Broadcom and Advanced Micro Devices, which supply semiconductors used in data centers. Shares of the companies rose between 2 per cent and 3.3 per cent in premarket trading.<\/p>\n

Competitor CoreWeave\u2019s shares were up 7 per cent before the bell.<\/p>\n

Oracle reported four multi-billion-dollar contracts with three clients during the August quarter, highlighting a robust appetite for its cloud services.<\/p>\n

\u201cOver the next few months, we expect to sign up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars,\u201d said CEO Safra Catz.<\/p>\n

Still, Microsoft, Amazon Web Services and Google Cloud dominate the cloud computing market with a combined 65-per-cent share, while Oracle, Alibaba, CoreWeave and others hold a smaller slice of the market.<\/p>\n

The company has struck deals with Amazon, Alphabet and Microsoft let their cloud customers run Oracle Cloud Infrastructure (OCI) alongside native services. The revenue from these partnerships rose more than sixteen-fold in the first quarter.<\/p>\n

\u201cWhat matters here is that this figure now includes contributions from the Stargate venture and two other big AI players, meaning revenues beyond 2026 go much higher,\u201d said Ben Reitzes, analyst at Melius Research.<\/p>\n

Analysts also flagged Oracle\u2019s role in SoftBank and OpenAI\u2019s Stargate project as another tailwind, giving the company a foothold in the large-scale AI infrastructure project that is expected to channel about $500 billion in spending.<\/p>\n

Oracle also supplies cloud services to xAI, the AI startup founded by Elon Musk, the world\u2019s richest person and a longtime ally of the cloud computing company\u2019s chairman Larry Ellison.<\/p>\n

Ellison, 81, whose net worth is largely built on his 41-per-cent stake in Oracle, is fast approaching Musk in the race for the world\u2019s richest title, according to Forbes data.<\/p>\n

Oracle\u2019s stock is trading at over 33.34 times its 12-month forward earnings estimates, compared with Amazon\u2019s 32.34 and Microsoft\u2019s 30.83.<\/p>\n

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Oracle shares (ORCL-N) soared about 33 per cent before the bell on Wednesday after the company pointed to…\n","protected":false},"author":2,"featured_media":133728,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[901,888,902,879,877,903,49,48,876,895,896,891,878,875,285,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-133727","post","type-post","status-publish","format-standard","has-post-thumbnail","category-computing","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-computing","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/133727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=133727"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/133727\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/133728"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=133727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=133727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=133727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}