Oracle Shares Gain Momentum from TikTok Partnership and AI Demand

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Investor sentiment toward Oracle has brightened following a significant strategic development. The catalyst is a long-awaited resolution concerning the future of TikTok's operations in the United States, coupled with enduring tailwinds from the artificial intelligence sector. These factors are prompting market participants to reconsider the technology giant's prospects after a recent period of correction.

Beyond the TikTok news, Oracle continues to benefit from the relentless expansion of the artificial intelligence market. Recent reports indicating a planned capital raise for OpenAI—which could value the AI leader at approximately $830 billion—are reinforcing the investment case for Oracle.

As the provider of cloud infrastructure for OpenAI, analysts interpret this potential capital influx as a strong indicator of sustained, high demand for Oracle's Gen2 Cloud services. The direct link between rising global investment in AI infrastructure and Oracle's potential revenue growth remains a cornerstone of the bullish thesis for the company.

Joint Venture Details Avert U.S. Ban

Market relief followed the confirmation that ByteDance has signed binding agreements with a consortium including Oracle, Silver Lake, and MGX. The newly formed entity, "TikTok USDS Joint Venture LLC," is designed to prevent a ban of the popular video application in the United States.

Under the terms of the deal, Oracle secures a pivotal strategic role. The corporation will hold a 15 percent stake in the new venture and serve as the "Trusted Security Partner." In this capacity, Oracle will be responsible for data storage and algorithm management for TikTok's roughly 170 million users in the U.S. The joint venture is structured to operate independently and will be majority-controlled by U.S. investors.

Analysts Acknowledge Potential Amid Financial Considerations

Despite these positive operational catalysts, financial challenges warrant investor attention. While firms such as Evercore ISI maintain their "Outperform" rating, citing cloud growth, several balance sheet factors present risks:

• Debt Levels: Oracle's total debt now exceeds $124 billion, and Moody's has assigned a negative outlook to its credit rating.
• Funding Hurdles: Blue Owl Capital has reportedly withdrawn from financing a $10 billion data center project.
• Leasing Liabilities: Commitments related to leasing for data center expansion have risen significantly.

Currently, the market appears to be prioritizing the revenue certainty offered by the TikTok agreement and the AI narrative over these debt concerns. Oracle's stock is currently trading at €164.26, marking a substantial recovery from its 52-week low of €111.42. The successful closure of the TikTok transaction, scheduled for January 22, 2026, stands as the next critical milestone for the company.