Oracle Hits Record High as $30B Cloud Contract Sparks Rally

Oracle (NYSE: ORCL) shares surged to a new all-time intraday high of $228.22, closing just under $218, after revealing a transformative cloud services agreement expected to generate more than $30 billion annually starting in fiscal 2028. The stock, already up nearly 30% in 2025, continues to outperform as traders bet on enterprise cloud momentum and AI-driven infrastructure expansion.

CEO Safra Catz called the new fiscal year a “strong start,” citing explosive growth in Oracle’s multicloud database division and confirmation of multiple hyperscale cloud deals in progress. One of these—a long-term, high-value contract—helped drive the sharp re-rating in the stock.

Big-Cap Tech Rotates Back Into Favor

The breakout reinforces Oracle’s role among top-tier large-cap technology assets. Fiscal Q4 results showed cloud services revenue jumping 24% year-over-year to $5.3 billion, while Oracle Cloud Infrastructure (OCI) is projected to grow nearly 70% in the next fiscal year.

Demand for AI-ready infrastructure remains a primary catalyst. Oracle’s partnerships with Nvidia (NASDAQ: NVDA) and involvement in major enterprise AI projects are positioning it to absorb overflow from rivals facing data center constraints. Analysts at UBS and Stifel lifted their price targets to $250, citing the combination of growth, earnings visibility, and expanding margins.

Momentum and Technical Setup Align

Oracle’s breakout cleared months of consolidation, triggering bullish chart signals and strong institutional flows. Call volume has surged, and the stock now trades at multi-month highs on both price and relative strength. Traders are watching for a possible grind toward the $240–250 zone, with $200 serving as a key support pivot.

Free cash flow above $9 billion and a 41% operating margin give Oracle the flexibility to support both reinvestment and capital returns—an increasingly attractive feature in the current equity environment.

Broader Market Signals and Sector Impact

Oracle’s rally supported broader gains across tech indices, with the Nasdaq 100 extending record highs. Large-cap tech names including Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Nvidia also attracted strong interest. Traders shifted allocations toward names with clear earnings catalysts tied to cloud infrastructure and AI deployment.

Currency markets showed a moderate risk-on bias. USD/JPY and USD/CHF eased lower, reflecting investor rotation away from havens. Gold hovered near $2,400, steady as inflation expectations remain anchored despite tech-sector heat. Oil prices held above $80, with little spillover from equity strength.

Tips for Traders

• Oracle (ORCL): Price action remains bullish—consider entries above $218 with upside toward $240–250. Watch $200 as near-term support.

• Nvidia (NVDA): Strong cloud infrastructure demand underpins the AI chip trade. Maintain upside bias.

• Nasdaq 100 (US100): Tech-led momentum intact—monitor for short-term extensions or rotation.

• USD/JPY and USD/CHF: Watch for further safe-haven outflows if equity optimism broadens.

• Gold (XAU/USD): Holds as a hedge—rally above $2,420 could suggest renewed inflation trade.

• Oil (WTI/USD): Stable for now—breakouts in equities could eventually feed through to energy sentiment.