The stock price of Oracle soared nearly 40%, with a market capitalization approaching $1 trillion, and Larry Ellison topped the list of the world's richest.

On September 10th (Wednesday), Oracle's stock price surged by 39%, pushing its market capitalization above $900 billion, just a step away from the $1 trillion milestone. This astonishing rise has shaken the market, marking Oracle's strongest single-day performance since 1992. According to Cryptopolitan, the explosive growth in demand for cloud computing and artificial intelligence (AI) services is behind this dramatic stock price increase.

$455 billion in order backlog, far exceeding expectations

On Tuesday evening, Oracle announced that its remaining performance obligations (RPO) reached $455 billion, a year-on-year rise of 359%, far exceeding Wall Street analysts' previous estimate of $180 billion. Melius Research analyst Ben Reitzes stated in an interview with CNBC, "The order volume reported by Oracle is astonishing and significant. Wall Street originally expected the RPO to be around $180 billion, but the actual figure is several times the expectation, which is simply incredible."

The AI boom boosts the rise of Oracle.

The big pump in Oracle's stock price is no coincidence; it is attributed to its strategic positioning in the artificial intelligence sector. Oracle operates large-scale cloud infrastructure and has deep cooperation with NVIDIA, gaining priority access to GPUs (graphics processing units), which are the core technology driving large-scale AI processing. This has placed Oracle in a central position in the AI arms race against Microsoft, Amazon, and Google.

Oracle expects its cloud infrastructure revenue to reach $18 billion by fiscal year 2026, with a subsequent big pump: sales are projected to reach $32 billion, $73 billion, $114 billion, and ultimately climb to $144 billion over the next four years. These forecasts are not unfounded but are based on Oracle's strong performance that far exceeds market expectations.

Larry Ellison's net worth has risen sharply, topping the global billionaire list.

Oracle's outstanding performance has not only driven the company's market capitalization but also reshaped the global wealth landscape. According to Bloomberg, Oracle founder Larry Ellison's net worth increased by about $100 billion amid this stock price surge, enough for him to surpass Elon Musk and become the world's richest person.

Analysts reacted enthusiastically, raising their target prices.

Oracle's impressive performance has sparked enthusiastic reactions from analysts. On CNBC's "Fast Money" program, DA Davidson analyst Gil Luria described the quarterly results as "absolutely shocking." Deutsche Bank analysts stated that Oracle's quarterly performance was "fantastic" and raised the target price from $240 to $335. Deutsche Bank's report noted: "In nearly 20 years of tracking Oracle and the entire software industry, few quarterly performances can compare to this one, both in terms of the magnitude of data revisions and clarity."

Wells Fargo believes that Oracle's performance "strongly confirms" the robust momentum of the AI trend. Bank of America also upgraded Oracle's stock rating from "neutral" to "buy," stating: "Although the profitability of AI workloads remains a topic of debate, Oracle is clearly capturing significant market share in the rapidly growing AI infrastructure market." They described the $455 billion order backlog as "extraordinary" and believe that Oracle has become a "key driver of AI."

Market Impact and Industry Outlook

The strong performance of Oracle Script has created a ripple effect across the entire market. On that day, the S&P 500 Index briefly hit an all-time high during the session but closed up only 0.1%. The Nasdaq Composite Index fell 0.3% after setting a new historical high in the morning. The Dow Jones Index was dragged down by the weak market reaction to Apple's latest iPhone release, falling 272 points, a decrease of 0.6%.

Oracle's success indicates that its strategic layout in the fields of cloud computing and AI is bearing fruit. With the ongoing rise in global demand for AI infrastructure, Oracle is expected to continue playing a key role in the technology industry, driving market innovation and reshaping the competitive landscape.