Oracle Stock: AI Initiatives Drive 13% Surge

Oracle shares jumped an impressive 13.86% following the release of its fourth-quarter and full-year 2025 results, significantly outperforming market expectations. The dramatic price movement reflects growing investor confidence in the company's artificial intelligence strategy and cloud infrastructure developments. Analysts from multiple firms have responded by raising their price targets, with Jefferies increasing their projection from $200 to $220 while highlighting Oracle's remarkable 41% growth in remaining performance obligations (RPO).

Cloud and AI Powering Future Growth

The tech giant's momentum is primarily fueled by two key growth engines: cloud services and artificial intelligence capabilities. Jefferies analysts anticipate cloud revenue growth accelerating to 40% in fiscal year 2026, up from 24% in 2025, with Infrastructure-as-a-Service (IaaS) business expected to surge by 70%. Oracle's Cloud Infrastructure (OCI) grew by 62% last quarter, demonstrating strong market demand. The company's strategic partnership with AMD, integrating Instinct MI355X graphics processors into Oracle's cloud platform, further strengthens its AI computing resources. Management projects currency-adjusted revenue growth of 16% for fiscal 2026, with OCI potentially reaching annualized revenue of $20-25 billion by period end.

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Source StockWorld