Since the release of the unexpectedly strong financial report this week, Oracle's stock price has risen more than 12% in two days and has risen 49% this year, second only to Nvidia in the AI concept stocks. Due to the sharp rise in stock price after the release of the financial report, Oracle's founder Ellison's personal wealth has surpassed Zuckerberg, rising to third place globally.
Three-quarters of 2025 is about to pass. $Oracle (ORCL.US)$ It seems to be the second biggest winner in the AI concept stocks this year, after only Nvidia.
On Wednesday, September 11th, Eastern Time, Oracle's stock price rose more than 0.8%. Although the upward trend slowed down significantly compared to Tuesday, it hit a new record high for the second consecutive day. In the two days since the financial report was released, the stock price has risen by nearly 12.4%. As of the close on Wednesday, Oracle's cumulative year-to-date increase in stock price has reached 50%, second only to Nvidia, which has increased by nearly 136% this year. Following Oracle is Meta, which has accumulated an increase of about 45% this year.
It is worth mentioning that despite the "Black Monday" of the US stock market on August 5 and the "Black Opening" on the first trading day of September 3, Oracle has still accumulated an increase of over 18% in the past month, far outperforming Nvidia. Even with an increase of over 8% on Wednesday, marking the biggest daily increase since the end of July, Nvidia's increase in the past month is also less than 8%.
The biggest beneficiary of Oracle's recent stock price increase is company founder and chairman Larry Ellison, who just turned 80 last month, holding more than 40% of Oracle's outstanding shares. According to real-time data from Forbes' global billionaire rankings, as of Wednesday, Ellison's personal net worth has soared to $192.4 billion, second only to Tesla and SpaceX CEO Musk, and Amazon founder Bezos, with personal fortunes of $251.6 billion and $202.6 billion, respectively. Following Ellison, who ranked fourth on Tuesday, Meta CEO Zuckerberg's fortune is $15.1 billion less than Ellison's.
Oracle's earnings report is undoubtedly the biggest driver of the recent stock price increase. On the first trading day after the earnings report on Tuesday, Oracle's stock price soared 11.4%, with Ellison's personal assets surpassing Zuckerberg's on the same day.
On Monday, after the US stock market, Oracle announced that, as of the first quarter of the 2025 fiscal year ending in August, revenue increased by 7% to $13.3 billion, exceeding expectations, with the notable cloud infrastructure (OCI) revenue also stronger than Wall Street's expectations, growing by 45% to $2.2 billion. Oracle's second quarter revenue guidance growth range is 8% to 10%, with the median value higher than analysts' expected growth rate of 8.72%.
Morgan Stanley analyst Keith Weiss later emphasized that so far this year, Oracle's stock performance has far exceeded that of its peers in the software industry. He attributes this strong performance to Oracle being seen by investors as a major beneficiary of artificial intelligence (AI) hardware scarcity, driving the development of its OCI business.
Wall Street refers to the belief that OCI is key to Oracle's transformation from a traditional database company to an enterprise cloud computing service provider. The strategic partnership is widely recognized on Wall Street as a catalyst for Oracle's AI performance. In addition to a 'major collaboration' with the 'silicon valley's most mysterious' big data company Palantir, Oracle has been providing accelerated computing instances and software services to enterprises through OCI for years, and the collaboration to provide AI solutions has expanded this year.
Oracle's financial report partially led to the rebound of AI 'darling' Nvidia's stock price. Barron's noted that Oracle's strong financial report this week reminded people that Oracle's demand for Nvidia's AI-related chips should remain strong, a trend confirmed by Nvidia CEO Jensen Huang on Wednesday.
Editor/Somer