Oracle (NYSE:ORCL) Hits $140 on AI Momentum and Cloud Revenue Surge

Oracle Powers Higher As AI Cloud Demand Accelerates Across Public And Private Sectors

Oracle Corporation (NYSE:ORCL) continues its powerful run, with the stock recently trading at $140.38, up over 5.8% week-to-date, and over 11% month-over-month, as investors digest a wave of AI-fueled announcements. The rally is being driven by an aggressive expansion in Oracle’s cloud infrastructure offerings, including major AI partnerships, expanded government defense contracts, and high-throughput data center deployments. ORCL’s current price action shows strong momentum after bouncing off its June lows of $128.45, firmly establishing a bullish uptrend above key moving averages. For context, Oracle has gained over 41% year-over-year, outperforming the Nasdaq Composite's 28% rise, cementing its position as one of the premier AI infrastructure stocks.

AI Infrastructure Partnership With OpenAI, Nvidia, And Microsoft Reinforces Cloud Dominance

Oracle’s strategic alignment with OpenAI, NVIDIA, and Microsoft Azure reinforces its position as a foundational player in the next generation of AI workloads. The company has been rapidly expanding its OCI Supercluster deployments, integrating high-bandwidth GPU stacks tailored for LLM training and inference at scale. Oracle Cloud now supports enterprise-grade deployment of ChatGPT models via NVIDIA H100-powered infrastructure, with scalability across 45+ global cloud regions. Microsoft has reportedly expanded its cloud provisioning with Oracle to support rising Azure OpenAI Service demand. Oracle’s alignment with NVIDIA’s next-gen Blackwell GPUs is also seen as a key future catalyst as enterprise demand for inference-ready architecture accelerates.

Earnings Blow Past Estimates As Cloud Revenue Soars 24% Year-Over-Year

Oracle’s latest earnings release blew past Wall Street expectations, with Q4 FY2025 EPS at $1.63, beating by $0.07, and revenue of $14.45 billion, exceeding the $14.16 billion consensus. Cloud services and license support delivered a standout performance with $5.1 billion, up 24% YoY, led by growth in Oracle Cloud Infrastructure and Autonomous Database demand. NetSuite revenue alone topped $1.55 billion, up 18% YoY, while Fusion Applications grew 13% YoY, highlighting the broader strength across Oracle’s SaaS layer. The company also reaffirmed guidance for low double-digit cloud growth in FY2026. Operating margin remained strong at 41.2%, and free cash flow topped $9.3 billion in trailing twelve months, further supporting buybacks and capex.

Oracle Technical Levels: Holding $137.50 Support, Targeting $150 Breakout Zone

Technically, ORCL is consolidating above $137.50, a key short-term support level coinciding with the 21-day EMA. The next resistance zone is $144.80–$145.20, with a potential breakout targeting $150.00, $153.85, and even $156.50 based on Fibonacci projections. The 50-day MA stands at $132.10, providing additional support for bullish continuation. Momentum indicators remain supportive—RSI is stable at 61.3, MACD shows positive divergence, and the volume profile confirms strong institutional accumulation in the $134–$140 range. Options flow also shows increasing bullish call activity targeting the $145–$155 range over the next 30 days.

U.S. Government Cloud Wins, CapEx Cycle, And Fiscal Tailwinds Amplify Oracle’s Growth Visibility

Oracle recently secured a $10 billion multi-year Joint Warfighting Cloud Capability (JWCC) contract with the U.S. Department of Defense, joining Microsoft, Amazon, and Google as core infrastructure vendors. This deal provides a guaranteed stream of revenue through 2029. It also benefits from Trump’s proposed $3.9 trillion infrastructure and AI modernization bill, which includes federal digital modernization and cybersecurity funding. The company is rapidly expanding its FedRAMP-compliant cloud regions, crucial for classified AI workloads. Oracle’s continued deployment of Exadata Cloud@Customer and Cloud Regions for Government also deepens its penetration in federal and state-level verticals. Simultaneously, its healthcare cloud expansion with Cerner, which Oracle acquired for $28.3 billion, positions it as a key player in AI-driven medical analytics and electronic health record modernization.

Cloud Profitability And AI Stickiness Set Oracle Apart From Competitors

Oracle has achieved an enviable position among cloud providers by maintaining high profitability while scaling aggressively. Cloud gross margins are holding steady at 74.6%, while customer churn in OCI and Fusion Cloud remains under 5%. Oracle's bundling of infrastructure with key software applications—like its AI-enhanced Fusion ERP and NetSuite for mid-market—ensures vertical integration that increases switching costs. Recent surveys show that 74% of Fortune 500 CIOs plan to increase Oracle AI workload share in FY2026. Meanwhile, analysts from top brokerages have lifted their 12-month target to $155, with a bull-case scenario of $170 should Oracle post further upside surprise in cloud revenue. Institutional inflows have surged, with BlackRock increasing its position by 6.3 million shares last quarter.

Verdict: ORCL – STRONG BUY
Oracle remains one of the most compelling enterprise AI infrastructure plays in the market. With cloud revenue accelerating, technical indicators signaling strength, and government + private sector demand intensifying, the stock appears poised to test $150 and potentially extend toward $160+ over the next two quarters. The strategic integration of GPU clusters, closed-loop SaaS + IaaS platforms, and growing U.S. public sector partnerships make Oracle structurally well-positioned in the current macro cycle.

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