Oracle's Cloud Gambit Pays Off with Historic Weekly Surge

Oracle shares surge most since 1999 after securing 2.8 GW of power with Bloom Energy and announcing a direct multicloud link with AWS, boosting its AI infrastructure strategy.

Oracle shares have just completed their most explosive week in a quarter-century, soaring roughly 24% over five trading days. The rally, the company's strongest since 1999, was ignited by a pair of strategic deals that directly address two critical challenges for cloud giants: power and connectivity.

The week's momentum began with a major energy agreement. On Monday, Oracle's stock jumped nearly 13%—its best single-day performance since September—after announcing an expanded partnership with Bloom Energy. The deal secures Oracle access to up to 2.8 gigawatts of fuel cell systems, with 1.2 gigawatts already under firm contract. This move answers the pressing question of reliable power supply for the company's aggressive data center expansion, a build-out already financed by debt exceeding $124 billion.

By mid-week, a second catalyst emerged. Oracle and Amazon Web Services revealed a direct multicloud interconnection, set to launch later this year in the AWS US East (N. Virginia) region. This private link, bypassing the public internet with speeds up to 100 gigabits per second and no outbound data transfer fees from Oracle, completes the company's connectivity triangle with the three largest cloud providers. Similar direct links to Microsoft Azure and Google Cloud are already in place. The announcement propelled the stock another 5% higher on Thursday.

This strategic move is far more than a technical feat. For enterprise customers building complex AI applications that span multiple cloud environments—such as running an Oracle database on OCI while training models on AWS SageMaker—these low-latency interconnects are essential. Oracle's strategy effectively creates structural demand for its services, regardless of which cloud provider a client primarily uses.

The powerful rally finds fundamental support in Oracle's recent financial performance. Quarterly revenue grew 22% to $17.2 billion, with cloud revenue surging 44%. A standout figure is the remaining performance obligation, which skyrocketed 325% to $553 billion, providing clear visibility into future growth. Management has consequently raised its revenue target for fiscal year 2027 to $90 billion.

Analyst sentiment remains broadly positive. Citizens JMP Securities reaffirmed its Market Outperform rating and a $285 price target following the Bloom Energy news. The consensus among 35 analysts sits at an average target of $261 per share. Bank of America also reinitiated coverage in late March with a Buy rating and a $200 target, citing Oracle's positioning in AI infrastructure.

Despite the euphoria, significant hurdles remain. Trading around 150 euros in Frankfurt, the share price remains approximately 46% below its 52-week high of 280.70 euros. Bears point to the massive debt load taken on for AI infrastructure and the potential long-term threat from AI-native competitors like Anthropic and OpenAI to Oracle's core enterprise business. The sustainability of this re-rating will be tested with the next quarterly earnings, where the company must demonstrate it can convert its enormous backlog into tangible growth.