Oracle Stock Gains As $30 Billion AI Cloud Deals Mark 'Pivotal Moment' In Race Against Rivals — Jefferies Calls It A Hyperscale Leap Amid Trump-Backed Stargate Push

Oracle Corp.’s (NYSE:ORCL) cloud-services agreements have positioned the company as a leading force in the hyperscale cloud industry, according to analysts. The deals, which could add over $30 billion in yearly revenue by 2028, have sparked optimism about Oracle’s long-term growth prospects.

What Happened: In a regulatory filing last week, Oracle announced a series of significant cloud services agreements. These agreements, including one expected to generate over $30 billion in yearly revenue starting in fiscal year 2028, have been described as a “pivotal moment” in the company’s transition to a hyperscale cloud power, reported MarketWatch.

Analysts at Jefferies, led by Brent Thill, highlighted Oracle as a standout among large-cap software companies. The company is positioned to more than double its remaining performance obligations (RPO) while also speeding up its overall revenue growth.

Analysts view these developments as a major turning point in Oracle's cloud strategy, with the potential to shift investor discussions around backlog growth, the timing of revenue acceleration, and the company's ability to capitalize on large-scale AI demand.

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Although the deals will not impact revenue in fiscal year 2026, they're expected to improve Oracle's visibility into long-term sales trends and reinforce its position as a hyperscaler capable of landing massive contracts.

Why It Matters: Earlier in July, Oracle made headlines when it agreed to lease 4.5 gigawatts of computing power to OpenAI, a key player in the AI industry. This lease was part of the $500 billion Stargate project for artificial intelligence data centers and infrastructure, which was announced by President Donald Trump.

Oracle’s position in the AI industry was further bolstered when it offered deep discounts on its AI, cloud, and database tools to the U.S. government. This strategic move not only strengthened Oracle’s relationship with a major client but also showcased its commitment to becoming a key player in the AI sector.

Despite Oracle’s successes, it faces stiff competition in the AI infrastructure sector. CoreWeave CEO Michael Intrator acknowledged Oracle as a strong rival in the AI infrastructure sector, emphasizing the importance of CoreWeave’s unique selling point in differentiating itself from Oracle.

Price Action: Oracle closed at $235.81 on Wednesday, up 0.56%, and edged to $235.90 after hours. The stock is up 42.03% year to date, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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