Oracle's AI Ambitions Soar with Project Stargate: A $500 Billion Joint Venture

Oracle's AI Moonshot: Why Project Stargate Could Propel ORCL Stock Higher - Oracle (NYSE:ORCL)

Strong technicals and AI partnerships suggest ORCL stock's rally may have long-term staying power beyond the initial hype. Oracle Corp ORCL just got its golden AI ticket. The stock surged as much as 8.51% in pre-market trading Wednesday after President Donald Trump unveiled Project Stargate, a massive $500 billion AI infrastructure initiative featuring Oracle, OpenAI, Nvidia Corp NVDA, and SoftBank Capital. With $100 billion committed in the first year alone, this project cements Oracle's role as a key AI backbone. But is this just a short-term pop, or does it signal a deeper bull case for Oracle stock? Oracle's AI Advantage Just Got Supercharged Oracle has been aggressively expanding its AI and cloud offerings, positioning itself as a critical infrastructure provider for generative AI workloads. Project Stargate validates that strategy, giving Oracle direct government-backed investment and integration with AI giants like OpenAI. For investors, this means Oracle is no longer just competing in the AI arms race -- it's helping build the battlefield. Expect increased cloud demand, long-term government contracts, and a higher revenue ceiling. Read Also: Elon Musk Says Project Stargate Doesn't 'Actually Have The Money' After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI Ellison's Billionaire Flex: Confidence In Oracle's Future Oracle's CEO Larry Ellison's $12 billion windfall from the stock surge speaks volumes. His 41% stake in Oracle makes him the biggest beneficiary of this AI momentum, and the fact that he overtook Meta Platforms Inc's META CEO Mark Zuckerberg to become the world's third-richest person highlights just how much value the market sees in Oracle's future. When insiders win big, long-term investors take notice. ORCL Stock Chart: The Bullish Case Chart created using Benzinga Pro ORCL stock is trading above its eight, 20 and 200-day simple moving averages, signaling strong buying pressure. While the 50-day moving average sits slightly higher at $176.33 (vs. ORCL stock at $172.57), the broader trend remains bullish. The RSI (relative strength index) at 57.50 suggests room to run before hitting overbought levels. Although, the MACD (moving average convergence/divergence) indicator at a negative 3.72, signals bearish momentum. Investor Takeaway: More Than Just A Hype Rally AI narratives have driven short-term pops before, but Project Stargate gives Oracle something tangible -- a direct capital infusion, AI partnerships, and potential long-term infrastructure dominance. With strong technicals and institutional backing, ORCL stock's momentum could be more than just a momentary surge. Investors betting on the AI boom now have a compelling reason to keep Oracle on their radar. Read Next: Oracle Unveils AI-Powered Sales Tools To Boost Customer Engagements: Details Photo: Shutterstock ORCLOracle Corp$190.6810.5%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewMETAMeta Platforms Inc$624.961.38%NVDANVIDIA Corp$145.283.16%Market News and Data brought to you by Benzinga APIs

Watch These Oracle Price Levels as Stock Surges on Optimism About AI Joint Venture

Oracle (ORCL) shares soared Wednesday for the second straight session as investors reacted to news that the enterprise software company will form a joint venture with OpenAI and Japan's SoftBank to build artificial intelligence (AI) infrastructure. The initiative, named Stargate, is expected to involve investments of as much as $500 billion over the next four years, as the project aims to bolster American AI leadership and create thousands of U.S. jobs. Reports of the JV surfaced early Tuesday, which gave Oracle a boost yesterday, and were confirmed by President Donald Trump at a White House event last night with executives from the three companies. Oracle shares were up 7.5% at around $185.50 in afternoon trading Wednesday, adding to yesterday's 7% gain. The stock has risen nearly 70% over the past year, supported by growing demand for the company's AI-integrated cloud and database offerings. Impressively, the move occurred on the highest trading volume since early September, setting the stage for follow-through buying. Meanwhile, the relative strength index (RSI) has moved back above the 50 threshold to signal improving price momentum, but still remains significantly below overbought levels, giving the stock ample room to explore higher prices. Let's point out two key overhead areas on Oracle's chart that may come into focus amid further buying and also identify important support levels to monitor during pullbacks. The first higher area to watch sits just above the falling 50-day moving average around $178. Although the stock trades above this level Wednesday, it could provide resistance near a trendline that links a range of comparable price points on the chart from October to December. Further upside could see the shares climb to the $196 area. Investors who have bought at lower prices may look for exit points in this location near the stock's twin peaks that formed in late November and early December. During declines, investors should initially monitor how the price responds to the $154 level. The shares could encounter support in this area from the January swing low, which also closely aligns with the opening price of an early-September breakaway gap. Finally, selling below this level could see the Oracle shares revisit lower support around $145, a location where investors may seek entry points near multiple peaks that formed on the chart between June and early September. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Oracle Takes Run at Cloud's Big Three With Trump-Backed AI Pact

(Bloomberg) -- Oracle Corp. has charged out of the gate in 2025, after its best year in a quarter-century. A plan unveiled with President Donald Trump has intensified hopes that its cloud business will see a tailwind from artificial intelligence. The stock's latest advance came on news the software company is forming a $100 billion joint venture with SoftBank Group Corp. and OpenAI to fund an expansion of data centers to support a business in which Oracle lags behind rivals like Amazon.com Inc. and Microsoft Corp. "This certainly has us looking at the name in a way we hadn't before, since this could represent a meaningful inflection in growth," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. "It seems like it is in good company here, but my main hesitation is about how long this halo might last, since the stock has really rocketed." Oracle shares have performed like some of the tech giants that have driven the market's gains for the past two years, as it seeks to establish itself as a major player in cloud computing. The stock is up more than 10% in January after posting a nearly 60% gain last year, its best performance since 1999. The joint venture has a goal of growing to "at least" $500 billion, which would be considerable in comparison to the tens of billions of dollars that megacaps have poured into AI. UBS expects the combined capex of major tech companies will come in at $280 billion in 2025. However, there are questions about the scope of new commitments and whether the news represents a dramatic increase from previously announced plans. Elon Musk publicly questioned whether the companies could follow through on their promises, while Anthropic's CEO also queried the financing and said the project seemed "a bit chaotic." In a sign of the headline whiplash that has accompanied his return to the presidency, Trump also said he would be open to Oracle Chairman Larry Ellison buying TikTok as part of a joint venture with the US government, a prospect that is difficult to measure in terms of its likelihood or impact. "This is all very speculative, and potentially meaningful, but it sounds crazy to me in a lot of ways," Ghriskey said. "It is good to be on Trump's good side, but that can be a short-term thing." A Small, Growing Player Compared to the big three of Amazon, Microsoft and Alphabet Inc., Oracle is a small player in cloud computing. It has a less than 5% share in the infrastructure-as-a-service market, compared with Amazon Web Services at more than 40% and Microsoft around 16%, according to Bloomberg Intelligence -- which also estimated the venture could help grow its cloud infrastructure sales from a roughly $10 billion annual run rate currently to $30 billion or $40 billion over the coming years. "This moves Oracle even closer to the ballpark that Amazon, Microsoft and Alphabet are mentioned in," said Jim Awad, senior managing director at Clearstead Advisors, referring to the venture. "While there's probably some hype around Trump's announcement, this is still a clear positive. It is in such a powerful long-term uptrend that you need to stay involved, even if valuations aren't exactly cheap anymore." While Oracle's most recent results failed to live up to high expectations, Wall Street has steadily grown more positive on its prospects, and growth in Oracle's cloud infrastructure business is expected to far outpace its overall revenue growth this year, according to Bloomberg Consensus estimates. Still, the stock's rally on the venture news hasn't been met with a commensurate increase in the analyst consensus. Expectations for the company's net 2025 and 2026 earnings are up just 0.2% over the past week, while the view for revenue is unchanged. The stock's forward earnings multiple has swelled above 27, well above its 10-year average of 15.8. It also trades at a premium to the Nasdaq 100 Index, though it is below Microsoft's multiple of 31. Joe Tigay, portfolio manager of the Rational Equity Armor Fund, is among those taking a cautious eye toward the stock's rally. "It's prudent to wait and see what the actual earnings are and what the actual company says about all these projects, rather than just pricing it in right now because the timing is often uncertain and how big of an impact is always uncertain." He added that it was impossible to assess the the prospect of a deal surrounding TikTok without further details. "In terms of value for Oracle, it's really hard for me to say that would be great for the bottom line or terrible." Tech Chart of the Day Apple Inc. has slumped almost 11% in January putting the stock on track for its biggest one-month decline since December 2022. Earlier this week, at least two analysts from Loop Capital and Jefferies downgraded their ratings on the stock as weak iPhone sales are becoming an increasing concern for investors. The stock is down about 14% from a December peak. --With assistance from Carmen Reinicke and Subrat Patnaik.