Oracle (NYSE:ORCL)a provider of enterprise software and cloud services, closed Monday at $156.61, up 9.66%. The stock rose after an upgrade from DA Davidson to Buy with a higher target and on renewed enthusiasm for Oracle’s AI and cloud capabilities. The company’s trading volume was 49.5 million shares, which is roughly 73% higher than the three-month average of 28.6 million shares. Oracle went public in 1986 and has grown 247415% since its IPO.
The S&P500 (SNPINDEX: ^GSPC) added 0.45% to end Monday at 6,964, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.90% to close at 23,239. Within software – infrastructure, industry peers Microsoft (NASDAQ:MSFT) closed at $413.71 (+3.13%) and JUICE (NYSE:SAP) ended at $210.41 (+3.48%), reflecting the broad strength of large enterprise software names.
Oracle’s rally reflects renewed confidence that its cloud business will benefit directly from AI-driven infrastructure spending. While DA Davidson’s upgrade contributed to this move, broader gains among major software companies indicate a broader reassessment in demand for enterprise cloud solutions, barring a single rating change.
This shift is supported by strong AI-related capital expenditures. Increased cloud investment from major platforms has allayed concerns that Oracle could be eclipsed by larger hyperscalers, strengthening its long-term expansion strategy. Investors now view Oracle as an active participant in AI infrastructure development rather than an existing vendor. Oracle’s expansion of cloud capacity requires significant investments, with a continued focus on generating cash and returns as expenses increase. Investors will be closely watching the coming results and cloud adoption to see if AI-powered demand can translate into sustainable growth without squeezing free cash flow.
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