Oracle Stock Soars on $30B+ Cloud Deal, AI Demand & Future Revenue Surge
KhabriDose.com Business Desk: Oracle Stock Skyrockets as Landmark $30 Billion Cloud Deal Powers Future Revenue Growth
Redwood Shores, California – June 30, 2025 – Oracle Corporation (NYSE: ORCL) is riding a massive wave of momentum, with its stock price soaring to new highs following the announcement of significant cloud services agreements, including a landmark contract projected to contribute over $30 billion in annual revenue starting in fiscal year 2028. The tech giant’s shares surged today, extending recent gains as investor confidence cements its position as a dominant force in the booming AI cloud infrastructure market.
Oracle’s stock jumped over 5.5% today, building on a robust performance that has seen it climb nearly 36% in the last month alone and over 31% year-to-date. This impressive rally reflects the market’s enthusiastic response to Oracle’s strategic pivot towards high-growth cloud and AI segments, transforming its traditional database image into a cutting-edge cloud provider.
While specific client details for the $30 billion deal remain undisclosed, Oracle confirmed in a recent SEC filing that it has secured “several large cloud services agreements.” This includes one monumental contract that is expected to generate upwards of $30 billion in annual revenue once fully operational by fiscal year 2028. This long-term, high-value commitment underscores the insatiable demand for Oracle Cloud Infrastructure (OCI) amidst the global AI boom.
Fuelling the AI Revolution:
Oracle’s aggressive expansion in cloud infrastructure, particularly its OCI Supercluster capabilities, has positioned it as a preferred platform for many leading AI companies looking to train and deploy massive AI models. The company recently announced partnerships with major AI developers, including xAI, to offer their Grok models via OCI’s Generative AI service, further solidifying its role in the AI ecosystem. Deploying advanced AMD Instinct MI355X GPUs in its cloud infrastructure will also significantly enhance its offerings for large-scale AI workloads.
CEO Safra Catz previously highlighted the company’s ambitious growth trajectory, projecting cloud infrastructure revenue to increase by over 70% in the new fiscal year, accelerating from a 52% growth rate. The recent agreements strongly support Oracle’s target of reaching at least $67 billion in total revenue for fiscal 2026 and potentially surpassing a $104 billion revenue target by fiscal 2029.
Analyst Optimism and Market Outlook:
The news has prompted a wave of analyst upgrades and raised price targets for Oracle. Stifel, for instance, recently upgraded Oracle to ‘Buy’ with a price target of $250, citing the company’s dramatic increase in capital expenditure and Remaining Performance Obligation (RPO) gains, which underpin management’s optimistic growth expectations for its cloud businesses. RPO, a key indicator of future contracted revenue, has shown exceptional growth, reaching $138 billion in a recent quarter, up 41% year-over-year.
Industry experts believe Oracle is successfully navigating the competitive cloud landscape by offering a unique multicloud strategy and seamlessly integrating generative AI into its cloud applications. This approach is breaking down adoption barriers and attracting enterprises seeking robust, cost-effective, and high-performance cloud solutions for their mission-critical workloads.
As Oracle continues to build out its global data center footprint – with plans to construct 47 more by the end of fiscal 2026 – its ability to secure such massive, long-term cloud deals reinforces its powerful transformation and bright outlook in the rapidly expanding cloud and AI markets.
