New York (AFP) – Oracle shares surged more than 35 percent in early trading Wednesday after the software giant projected massive revenue growth based on contracts tied to artificial intelligence. Oracle CEO Safra Catz called the just-finished quarter “astonishing” as the company signed “four multi-billion-dollar contracts with three different customers.”
About 40 minutes into trading, shares were at $337.02, up nearly 40 percent, lifting the company’s market valuation to around $950 billion. The surge will significantly boost the wealth of Oracle Chairman Larry Ellison, who could potentially surpass Elon Musk as the world’s richest person. Oracle’s rally also lifted the S&P 500, which rose 0.5 percent to 6,545.94, pushing the index further into record territory.
The Dow Jones Industrial Average slipped 0.1 percent to 45,659.71, while the tech-heavy Nasdaq Composite Index advanced 0.3 percent to 21,950.81. All three indices finished at records Tuesday as markets anticipate a likely Federal Reserve interest rate cut next week amid signs of a weakening US employment market. Those expectations were reinforced by a surprise 0.1 percent decline in the producer price index in August, according to government data. US consumer price data for the same period will be released Thursday.
AI-related investments have been a major driver of equity market strength in 2025. Oracle projected that its cloud business revenues would grow 77 percent in the current fiscal year to $18 billion. In subsequent years, revenues are expected to rise to $32 billion, $73 billion, $114 billion, and $144 billion. Catz said the company expects to sign “additional multi-billion-dollar” contracts in the coming months.
© 2024 AFP
