Oracle
stock looked set to climb to record highs Tuesday, while
C3.ai,
Palantir Technologies,
and other AI-focused stocks also were given a boost after the enterprise software company reported strong earnings.
Shares in
Oracle
(ticker: ORCL) closed at an all-time high ahead of the company’s earnings Monday and spiked again in premarket trading after
Oracle
beat earnings expectations in the fiscal fourth quarter. The stock was up 4% in premarket trading.
Management also extolled the impact of AI demand on its cloud business, something investors were hoping to hear. Oracle stuck to its forecast of $65 billion in sales by 2026, but CEO Safra Catz said “AI demand leaves us significant upside.”
The upbeat earnings and outlook appeared to give AI-exposed stocks another lift ahead of the open of trading Tuesday.
Palantir
(PLTR) stock climbed more than 2%, and chip makers
Advanced Micro Devices
(AMD) and
Micron Technology
(MU) also gained around 2%.
C3.ai
(AI) rose 1% and
Nvidia
(NVDA) climbed 1.2%, while Oracle’s rival
Adobe
(ADBE) was up around 2.5%.
D.A. Davidson analyst Gil Luria said Oracle’s cloud business results were “solid,” reiterating a Neutral rating on the stock with a price target of $115.
“While management focused on Oracle’s role in helping enterprises train their own LLMs (language learning models), the overall conversation was focused on underlying drivers of Oracle’s cloud growth,” Luria said. “Importantly, management reiterated its commitment to previously laid out FY2026 targets,” he added.
Oracle posted revenue of $13.8 billion in the fiscal fourth quarter, ahead of analysts’ estimates of $13.7 billion, according to FactSet. Adjusted earnings of $1.67 a share also beat expectations of $1.58.
Write to Callum Keown at [email protected]
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