news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

three quarters of the way to 2025, oracle looks set to become the second biggest winner of ai stocks this year, after nvidia.

on wednesday, september 11, eastern time, oracle's stock price closed up more than 0.8%. although the rise slowed down significantly compared with tuesday, it hit a record high for the second consecutive day, and the cumulative increase in the two days since the release of the financial report was nearly 12.4%. as of wednesday's close, oracle's stock price has risen by 49% since the beginning of this year, second only to nvidia, which has risen by nearly 136% this year, among ai concept stocks. following oracle is meta, which has risen by about 45% this year.

it is worth mentioning that despite the "black monday" of the u.s. stock market on august 5 and the "black start" on september 3, the first trading day of september, oracle has still risen by more than 18% in the past month, far outperforming nvidia. even though it rose by more than 8% on wednesday, the largest daily increase since the end of july, nvidia's increase in the past month was less than 8%.

the biggest beneficiary of oracle's recent stock price rise is larry ellison, the company's founder and chairman who just turned 80 last month and holds more than 40% of oracle's outstanding shares. according to real-time data from forbes' global billionaire rankings, ellison's personal net worth has soared to $192.4 billion by wednesday, second only to tesla and spacex ceo musk and amazon founder bezos, whose personal net worths are $251.6 billion and $202.6 billion, respectively. meta ceo zuckerberg, who ranked fourth on tuesday after ellison, has a net worth of $15.1 billion less than him.

oracle's financial report is undoubtedly the biggest driving force behind the recent stock price increase. on tuesday, the first trading day after the release of the financial report, oracle's stock price soared 11.4% in one day, and ellison's personal assets also surpassed zuckerberg on the same day.

after the u.s. stock market closed on monday, oracle announced that its revenue for the first quarter of fiscal year 2025 ending in august exceeded expectations by 7% year-on-year to $13.3 billion. among them, the highly anticipated cloud infrastructure (oci) revenue was also stronger than wall street expected, increasing by 45% year-on-year to $2.2 billion. oracle's second-quarter revenue guidance range is 8% to 10%, and the median value is higher than analysts' expected growth rate of 8.72%.

morgan stanley analyst keith weiss has since highlighted that oracle's stock price has significantly outperformed its software peers so far this year. he attributes this strong performance to oracle being seen by investors as a major beneficiary of the scarcity of artificial intelligence (ai) hardware, which has boosted its oci business.

wall street news mentioned that some analysts believe that oci is the key to oracle's transformation from a traditional database company to an enterprise cloud service provider. wall street generally recognizes that strategic partnerships will help oracle's ai performance. in addition to the "major cooperation" with palantir, the "most mysterious" big data company in silicon valley, oracle and nvidia have been providing accelerated computing instances and software services to enterprises through oci for many years. starting this year, the cooperation between the two to provide artificial intelligence solutions has been expanded.

oracle's earnings report also partially drove the stock price of ai "darling" nvidia to rebound. barron's said that oracle's strong earnings report this week reminded people that oracle's demand for nvidia's artificial intelligence-related chips should remain strong, a trend that was personally confirmed by nvidia ceo jensen huang on wednesday.