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Oracle Stock Surges 39% on Cloud Growth and AI Demand

Oracle

Business Honor
21 June, 2025

Oracle's 39% stock gain mirrors robust cloud expansion, strategic alliances, and increasing AI demand, setting it up for further long-term success.

Oracle Corporation has seen its share price increase by 39%, in the last quarter, propelled by a series of strategic moves and strong financial performance. Among the developments is the inclusion of the Hammerspace Solution within the Oracle Cloud Marketplace, which provides a huge boost to access to GPU capabilities. The action is anticipated to drive the need for Oracle's cloud infrastructure, especially among businesses seeking AI and high-performance computing capabilities.

Oracle's strong Q4 2025 report further reinforced investor faith. Both revenue and net income showed year-over-year increases, driven by robust cloud growth and increasing customer demand. Over the past half decade, Oracle has delivered an impressive total return of 319.11%, which reflects enduring long-term value creation.

Its rapid expansion of cloud regions and expanded power capacity further fuel its cloud growth. Strategic partnerships with technology leaders like AWS, Google Cloud, and Microsoft Azure further boost Oracle's ecosystem and create new avenues for growth. Remarkably, Oracle's last year's earnings increased 18.9%, outshining the US Software industry's 17.7% and the total market's 10.4%.

Analysts have assigned a consensus price target of $178.12, which is 17.1% above its current price of $147.70. Yet, there are some risks facing Oracle in the form of possible delays in the construction of infrastructure and currency fluctuations that could impact foreign revenue.

Barring that, the future looks bright. Oracle's top line is to increase at a rate of 14% annually with revenues of $19.5 billion in 2028. With cloud and AI solution demand going from strength to strength, Oracle seems set to catch the wave and cement its niche in the enterprise cloud business.