Oracle approaches $1 trillion valuation on soaring AI cloud momentum

Oracle’s market value surged past $930 billion this week, driven by explosive growth in its AI-powered cloud business and a major compute deal, positioning it among the S&P 500’s top performers and outpacing several major tech rivals

Oracle is edging closer to the $1 trillion valuation mark after another rise in its stock price, driven by mounting demand for its AI-powered cloud services. The company’s rapid ascent is being fueled by a string of high-value enterprise cloud deals, underscoring its growing role in the global race to supply infrastructure for artificial intelligence applications.

The stock added modest gains on Thursday, following a record-breaking surge earlier in the week that pushed its market capitalization above $930 billion. This momentum has turned Oracle into one of the best-performing companies in the S&P 500 this year, outpacing even several of the so-called "Magnificent Seven" tech giants.

At the heart of the surge is Oracle’s cloud business, which has seen explosive growth thanks to its AI capabilities and strategic partnerships. A landmark deal reportedly involving massive compute capacity for a leading AI firm has also played a pivotal role in lifting investor sentiment.

Ellison’s wealth soars amid tech boom

Oracle’s market success has also dramatically boosted the fortune of its co-founder, Larry Ellison. With the company’s share price nearly doubling year-to-date, Ellison’s net worth has grown by nearly $100 billion, putting him within reach of becoming the world’s richest individual.

The company’s performance has ignited broader interest in AI-linked stocks, with analysts noting that Oracle has “lit a fire” under the AI investment theme. The growing appetite for cloud infrastructure that can support AI training and inference workloads is reshaping market dynamics, and Oracle is now seen as a key player in this transformation.

Trading at a premium, with high expectations

Despite intense competition, Oracle is currently trading at a valuation premium compared to other cloud providers, reflecting investor confidence in its long-term AI strategy. With demand accelerating, the company is positioning itself to capitalize on a generational shift in enterprise technology driven by AI integration, high-performance computing, and digital transformation.