Oracle's stock is in uncharted territory.
Shares of the software giant stock surged as much as 43% on Wednesday after the company issued a blockbuster outlook for its AI-driven cloud-computing business. It marked the company's biggest single-day percentage gain since 1992.
Oracle CEO Safra Catz said during an analyst call on Tuesday that the company signed four multi-billion-dollar contracts with three different customers during the fiscal first quarter. That brought a measure of bookings to $455 billion, quadruple where it was a year before.
Catz added that the company expects Oracle Cloud Infrastructure to see revenue increase 77% to $18 billion from the previous year, and issued an aggressive forecast for the figure to hit $144 billion by 2030.
The bullish outlook has thrust Oracle firmly into the elite group of cloud-computing titans battling it out in the race for AI supremacy, a list that also includes Amazon, Microsoft, and Google.
Analysts at Bloomberg Intelligence pointed out that the company's backlog of $455 billion is roughly four times that of Google, suggesting that Oracle's "cloud-growth rate is poised to surpass" Google's.
Catz said that the company also expects to sign several additional multi-billion-dollar contracts with customers in the next few months, which would push the value of future contracts to over half a trillion dollars. She did not name Oracle's clients, but major contracts that have been made public over the past quarter include one with the Department of Agriculture in April.
Oracle's Cloud revenue is still much smaller compared to that of the largest industry leaders. Microsoft's Azure cloud computing platform brought in $75 billion over the past year, while Amazon Web Services generated nearly $112 billion.
"We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 data centers to our three Hyperscaler partners, for a total of 71," said Larry Ellison, the founder of Oracle, during the earnings call.
The stock rally is one of Oracle's largest since its founding in 1977. The company's upswing comes as it continues its bet on cloud infrastructure and its access to Nvidia GPUs, which gives it strong processing power. At the open, Oracle shares will be up more than 90% this year.
In July, Oracle signed a deal with OpenAI to develop 4.5 gigawatts of US data center capacity, as part of the Project Stargate supported by the Trump administration. Oracle also brought OpenAI's GPT-5 model into its applications in August and plans to launch an Oracle AI Database service by October, which will let clients run AI models directly on their own data.
