Portugal Colonial - Software company Oracle shares surge more than 35% on huge AI deals

Oracle CEO Safra Catz called the just-finished quarter "astonishing" as the company signed "four multi-billion-dollar contracts with three different customers."

About 40 minutes into trading, shares were at $337.02, up nearly 40 percent, lifting the company's market valuation to around $950 billion.

The surge will significantly boost the wealth of Oracle Chairman Larry Ellison, who could potentially surpass Elon Musk as the world's richest person.

Oracle's rally also lifted the S&P 500, which rose 0.5 percent to 6,545.94, pushing the index further into record territory.

The Dow Jones Industrial Average slipped 0.1 percent to 45,659.71, while the tech-heavy Nasdaq Composite Index advanced 0.3 percent to 21,950.81.

All three indices finished at records Tuesday as markets anticipate a likely Federal Reserve interest rate cut next week amid signs of a weakening US employment market.

Those expectations were reinforced by a surprise 0.1 percent decline in the producer price index in August, according to government data. US consumer price data for the same period will be released Thursday.

AI-related investments have been a major driver of equity market strength in 2025.

Oracle projected that its cloud business revenues would grow 77 percent in the current fiscal year to $18 billion. In subsequent years, revenues are expected to rise to $32 billion, $73 billion, $114 billion, and $144 billion.

Catz said the company expects to sign "additional multi-billion-dollar" contracts in the coming months.

C.Cassis--PC