Oracle shares slip after record AI-fuelled surge toward $1 trillion club

Oracle shares retreated on Thursday, paring gains from a record rally in the previous session that had propelled the software giant close to the coveted $1 trillion market capitalisation mark.

The surge, fuelled by strong quarterly results and upbeat commentary on its cloud infrastructure business, underscored the accelerating demand for computing power amid the global artificial intelligence race.

On Wednesday, Oracle’s stock soared as much as 42%, briefly making co-founder Larry Ellison the world’s richest man before Tesla’s Elon Musk reclaimed the top spot.

The rally added nearly $244 billion to Oracle’s market value, lifting it to a record $933 billion before settling lower.

Also Read: Oracle’s one-day market cap surge of $255 billion is double TCS’ entire market cap

The extraordinary rise also buoyed other AI-linked names, including Nvidia, Broadcom and TSMC. However, a bout of profit-taking followed on Thursday, with Oracle shares slipping 5% in early trade to $317.44, trimming its valuation to around $890 billion if losses hold, Reuters reported.

“A bit of buyer exhaustion here. I think the ‘buy the dip’ crowd is likely to re-emerge,” said Dennis Dick, chief strategist at Stock Trader Network.