Oracle’s Rally Fueled by AI, Cloud, Capitol Hill, and TikTok

Oracle (ORCL:US) has become one of the most talked-about stocks on Wall Street this month. The company’s latest earnings release sent shares soaring as investors reacted to blockbuster cloud contracts, a swelling backlog of future revenue, and rising demand tied to artificial intelligence.

At the heart of the surge is Oracle’s cloud business. Revenue from cloud services grew sharply, powered by infrastructure demand and new AI-driven agreements. A standout deal is the multibillion-dollar partnership with OpenAI, part of Oracle’s “Stargate” initiative, which will see the company provide massive data center capacity over the next few years. As a result, Oracle’s Remaining Performance Obligations jumped to more than $450 billion, offering investors an unusually clear line of sight into future growth.

Analysts have taken notice. Price targets have been raised across the board, and the optimism reflects not only strong customer adoption but also Oracle’s deeper push into government contracts. Through its OneGov initiative, Oracle is offering U.S. agencies steep discounts on cloud and software services, positioning itself as a long-term partner in the public sector.

Now, Oracle’s visibility has expanded even further with its central role in the ongoing TikTok deal. A consortium led by Oracle, Silver Lake, and Andreessen Horowitz is expected to control about 80% of TikTok’s U.S. operations under a new framework being finalized between Washington and Beijing. ByteDance, TikTok’s parent company, would retain just under 20%. As part of the arrangement, Oracle will manage all U.S. user data at its facilities in Texas, a move designed to address national security concerns that have dogged the app for years. For Oracle, the agreement not only cements its place in AI and cloud but also positions it as a gatekeeper for one of the most widely used apps in America, with nearly 170 million U.S. users.

This show of strength, in commercial AI partnerships, government adoption, and now high-profile consumer platforms, has helped Oracle transition from its reputation as a legacy software vendor to a serious contender in the cloud and AI infrastructure race. The market clearly likes the direction, and the company’s recent rally shows how much momentum is building.

Capitol Hill has been watching too. Our Capitol Trades data shows 75 transactions from 22 lawmakers totaling $1.25 million in volume over the past three years. Frequent traders include Jefferson Shreve, Josh Gottheimer, and Dave McCormick. The bipartisan interest suggests politicians see the same growth story that investors do, Oracle’s government ties and AI-fueled cloud growth make it a unique name in today’s market.