Oracle shares have just completed their most explosive week in over a quarter-century, fueled by a potent mix of strategic cloud deals and surging demand for its artificial intelligence infrastructure. The stock’s roughly 11.5% weekly gain, closing at 147.50 EUR, marks its strongest performance since the peak of the dot-com boom in 1999.
The rally was ignited by a series of announcements. On April 13, news of AI-powered utilities platforms sent the stock soaring over twelve percent in a single day. This was followed the next day by further enterprise AI expansions, adding nearly five percent. The momentum continued with a pre-market jump of over four percent on Thursday after Oracle revealed a pivotal partnership with Amazon Web Services.
This deal, announced April 16, will create a direct, high-speed private connection between Oracle Cloud Infrastructure and AWS, set to launch later this year in the US East region. The move completes Oracle’s integration with the three major hyperscalers—Microsoft Azure and Google Cloud are already on board—positioning it as a neutral multi-cloud provider for corporations modernizing their IT stacks.
Beneath the market euphoria lies a story of aggressive, capital-intensive expansion. Oracle is estimated to be investing approximately $50 billion in capital expenditures this fiscal year, a figure that is pressuring free cash flow into negative territory. This spending is directed at a massive build-out of data centers to meet AI demand, including a planned billion-dollar facility in Michigan designed for clients like OpenAI.
Should investors sell immediately? Or is it worth buying Oracle?
A critical hurdle in this expansion is securing sufficient power. Oracle recently moved to address this by signing a deal with Bloom Energy for up to 2.8 gigawatts of fuel cell capacity, with the first 1.2 gigawatts already being installed at US sites. This strategy aims to bypass grid constraints and feed the enormous energy appetite of new AI data centers.
The company’s fundamental results show why such bets are being made. For its third fiscal quarter of 2026, Oracle posted revenue of $17.19 billion. Its cloud infrastructure revenue skyrocketed 84% year-over-year to nearly $4.9 billion. Notably, it was the first time in over 15 years that both total organic revenue and adjusted earnings per share grew by at least 20% simultaneously. The remaining performance obligation, a measure of backlog, stands at $553 billion, more than quadrupling from the prior year and includes major contracts with OpenAI, Meta, and xAI.
This growth comes with significant financial and operational strain. Oracle carries long-term debt exceeding $124 billion. Concurrently, it is cutting between 20,000 and 30,000 jobs to reallocate resources toward AI. Despite the recent surge, the stock remains in double-digit negative territory for the year and trades roughly 20% below its 200-day moving average. A 14-day Relative Strength Index reading of 27 also indicates the shares are in technically oversold territory.
Investor attention now turns to near-term catalysts. The company is set to pay a quarterly dividend of $0.50 per share on April 24. More critically, the upcoming fourth fiscal quarter will be a key test, with management targeting currency-adjusted cloud growth of up to 50%. Analyst sentiment remains overwhelmingly positive, with 34 out of 35 covering the stock rating it a buy and an average price target of $243.87. Whether Oracle can hit its long-term revenue target of $90 billion for fiscal 2027 will ultimately determine if this historic week was a peak or a new foundation.
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