The American tech giant Oracle surprised the financial world on Wednesday with an unprecedented increase on the stock exchange. The share opened with a jump of 40 percent and eventually closed 37.36 percent higher. A price movement of this size is rare on Wall Street and raises the question: what is behind this unexpected explosion?
Oracle course reaches all-time high
The Oracle share had a stormy start of the trading day. A new all-time high was reached within a few minutes: $ 345.49. For comparison: the previous record from July was still below 260 dollars. After a slight relapse, the share still closed with a profit of more than 35 percent.
AI companies are displacing for Oracle’s computing power
The cause of the explosion? Artificial intelligence. Large AI players such as OpenAi and Xai hunt computing power, and Oracle suddenly appears to be indispensable in that search. The company won four billions of contracts in a short time, including a contribution to the Stargate from Softbank and OpenAi’s mega project.
According to top woman Safra Catz, this is just the beginning. She expects Oracle’s order portfolio to grow to more than $ 500 billion.
Ellison passes Musk as the richest person in the world
The price jump also had direct consequences for founder Larry Ellison. With an estimated capacity of $ 393 billion, he pushes Elon Musk off the throne as the richest man on earth. Meanwhile, Musk is struggling with disappointing sales at Tesla, but still has an asset.
Tesla’s board has a new reward package ready, with which Musk could in theory still earn 1 trillion dollar. For that, Tesla has to achieve the most ambitious business goals ever, including a market value of 8.5 trillion dollars.
Source: https://newsbit.nl/ai-deal-blaast-oracle-naar-recordhoogte-ellison-nieuwe-rijkste-persoon-ter-wereld/
