Oracle is on the verge of joining the trillion-dollar club as its stock surges, driven by soaring demand for cloud computing to support AI systems. The company’s market value is now $933 billion, after shares jumped 36% on Wednesday and continued to rise on Thursday, according to Reuters.
The rally is driven by rising demand for cloud computing to power AI. Reports indicate that OpenAI has signed a $300 billion deal with Oracle for computing resources, one of the largest in the industry.
Larry Ellison, Oracle’s co-founder, has seen his fortune soar by almost $100 billion, putting him close to Elon Musk in the wealth rankings.
Oracle’s hot streak benefits shareholders and ripples through the tech industry, boosting chipmakers like Nvidia and Broadcom. But the stock is now expensive, trading at a premium to Amazon and Microsoft with a stretched forward P/E ratio of 45.3.
