Massive News for Oracle Stock Investors

Oracle (ORCL -1.23%) isn't the largest cloud service provider on the market, but it's one of the fastest growing today – and the company once known for database management , is doing everything it can to develop its presence in the cloud and serve artificial intelligence (AI). clients. These efforts are paying off, with demand and revenue for cloud infrastructure skyrocketing in recent times.

In fact, in Oracle's quarterly report this week, the company reported a 42% increase in cloud infrastructure revenue, to $2 billion. And Oracle is even forecasting double-digit revenue growth for the full year, based on current demand for AI. The company is showing that it is attracting customers – it even signed its largest contracts on record in the last two quarters – and that it can compete with the biggest cloud service providers. On top of that, Oracle shared some news that could be huge for the company and for shareholders. Let's look at this.

Oracle's focus on cloud infrastructure

As mentioned, Oracle is focused on expanding and strengthening its cloud infrastructure offerings and serving AI customers. This helped the company sign its largest sales deals ever in the last quarter from customers looking to train large language models. During the quarter, Oracle signed approximately 30 AI contracts worth more than $12 billion.

This demand is pushing Oracle's remaining performance obligation (RPO), or expected revenue from contracted services, higher: during the quarter, RPO grew 44% to $98 billion. And the company says this momentum is expected to continue, giving us reason to be optimistic about revenue in the coming quarters.

Now let's move on to the big news that should reinforce our optimism. Oracle has announced two major AI deals involving market giants, a sign that Oracle has joined the ranks of today's leading AI companies. OpenAI, the developer of the popular chatbot ChatGPT, will run deep learning and AI workloads on Oracle Cloud infrastructure. And AlphabetGoogle has signed a multi-cloud partnership with Oracle, allowing customers to easily deploy projects across both clouds. As part of the agreement, Oracle will offer “Oracle Database at Google Cloud” starting in September.

These two agreements should notably allow Oracle to stand out and capture market share in the fast-growing field of AI. The company's progress on contracts has been promising, and these deals could build on that momentum.

A leader in “multi-cloud” partnerships

Oracle may be a smaller cloud player than its competitors, but the company offers proven advantages. The deal with Google represents another multi-cloud partnership, following an earlier agreement with Microsoft, and these agreements offer customers flexibility – a big plus. And the flexibility doesn't stop there. Oracle also offers other solutions like Sovereign Cloud and even Oracle Alloy, which allows customers to run their own Oracle-based cloud. Oracle is also known for its competitive pricing, usually lower than its competitors, another positive for winning business.

So, in addition to Oracle's benefits and the revenue gains made recently by its cloud business, these agreements with OpenAI and Alphabet represent further good news for the company and its investors. That resulted in the stock rising more than 13% in a single trading session after Oracle announced the deals — and shares hit an all-time high.

Of course, this is just a short-term stock move, but it's not unexpected: Oracle stock has already gained momentum, gaining 20% ​​over the past year. And if Oracle continues to generate revenue growth, expand capacity, and work with other large cloud providers, the stock could continue to gain.

Is it too late to jump into the Oracle AI growth story? No way. The stock is trading at just 22 times forward earnings estimates, a real bargain considering all the points I mentioned above. So, right now, you can buy this tech player for a song and applaud the massive news Oracle recently released – news that could match long-term earnings and stock price growth.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adria Cimino holds positions at Oracle. The Motley Fool holds positions and recommends Alphabet, Microsoft and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.