Oracle’s stock surged this week due to significant contracts with OpenAI, which continues to revolutionize the tech industry. This unprecedented single-day gain for Oracle marked its highest in over three decades, attributed to four multibillion-dollar contracts, including a major deal with OpenAI to enhance U.S. data center capacity using Oracle’s cloud infrastructure. OpenAI plans to invest $300 billion into computing power by 2027, amplifying interest in Oracle, alongside Microsoft and Nvidia, which benefit from OpenAI’s growth. Noteworthy is that Oracle’s backlog surged 359% year-over-year, heavily reliant on OpenAI. Despite this, analysts express caution, noting the company’s dependency on a single client could dampen long-term optimism. OpenAI’s rapid revenue growth—projected to hit $125 billion by 2029—contrasts with its ongoing restructuring into a public benefit corporation. Oracle’s market cap neared $1 trillion but later fell. Investors remain skeptical about Oracle’s position compared to market leaders like Amazon and Google.
Source link
