Oracle Corporation saw its stock price surge 10.84% on Friday, closing at $225.78, as investor enthusiasm for artificial intelligence infrastructure stocks continued to build. The rally capped a 17.5% weekly gain for the enterprise software giant, which has increasingly become a bellwether for the AI cloud computing trade.
The broader market also posted strong gains, with the S&P 500 rising 1.43% for the week and the Nasdaq Composite adding 2.39%. The software services index jumped more than 6%, reflecting easing concerns that AI might cannibalize software demand rather than boost it.
AI Order Book Swells
Oracle's remaining performance obligations (RPO) surged to $553 billion in its fiscal third quarter, a 325% year-over-year increase. This metric, which represents contracted revenue not yet recognized, underscores the rapid adoption of Oracle's cloud infrastructure for AI workloads. The company raised its fiscal 2027 revenue outlook to $90 billion while maintaining its fiscal 2026 targets of $67 billion in revenue and $50 billion in capital expenditures.
“The quarter was a stress test result for the AI trade,” said Jacob Bourne, analyst at eMarketer. Oracle co-CEO Clay Magouyrk told investors that the company's cloud infrastructure margins should “strengthen and grow rapidly” as it shifts toward higher-margin database workloads alongside its AI chip-rental business.
Competitive Landscape and Risks
Oracle continues to compete aggressively with Amazon Web Services and Microsoft Azure for AI infrastructure deals. The company has lined up as much as $50 billion in debt and equity to fund its data-center buildout. However, analysts point to ongoing risks, including high AI infrastructure costs, reliance on OpenAI-related demand, and scrutiny over TikTok's U.S. data handling.
In April, Oracle shares fell alongside other AI stocks on concerns about OpenAI's growth trajectory, highlighting the interconnected nature of the AI trade. CoreWeave, a cloud computing provider, has emerged as a proxy for demand from key accounts like OpenAI.
TikTok Data Scrutiny
U.S. Senator Ed Markey on Friday sent a letter to TikTok and Oracle requesting details on how they protect American user data and prevent foreign influence on the platform's recommendation algorithm. Oracle is one of three managing investors in TikTok's U.S. joint venture. TikTok has stated that its algorithm will be safeguarded on Oracle's U.S. cloud infrastructure.
Market Outlook
U.S. markets were closed Sunday, with trading set to resume Monday. Investors will be watching closely to see if the AI rally holds as June begins. Oracle's fiscal fourth-quarter results are scheduled for mid-June, according to the company's investor relations FAQ.
“Right now, price action leads,” noted Russ Mould, investment director at AJ Bell. “The broad rally, a bounce in the software index, and Oracle's AI order book are helping the stock. But the next step is tougher—Oracle has to prove it can turn those contracts, chips, and data center deals into cash quickly.”
