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The
database megacorp also teased joint announcements with Nvidia
coming up next week, which could be made at the chip firm's GTC
developer conference that runs from March 18 to 21.
The company has pitched itself as a low-cost cloud provider and
spent billions of dollars on Nvidia chips as it looks to compete
with industry heavyweights Amazon.com and Microsoft.
Those efforts, as well as a partnership that gives its cloud
customers access to Nvidia supercomputers, helped Oracle post a
25% jump in cloud revenue for the third quarter, while its
remaining performance obligations, or sales backlog, rose 29%.
"Oracle Cloud momentum is back on track after witnessing
disappointing cloud results in the prior two quarters," analysts
at Piper Sandler said in a client note.
The company was on track to adding nearly $40 billion to its
market value, based on its premarket share price of $129.67.
At least 14 analysts raised their price targets on the stock,
pushing the median view to $135.50. Oracle trades at 19 times
its 12-month forward earnings estimates, compared with 31.2 for
the software and IT services sector, per LSEG data.
Its shares underperformed big cloud rivals such as Microsoft in
2023 and thus far this year, on worries that data center
capacity constraints and an uncertain economic outlook were
weighing on the company's growth.
CEO Safra Catz dispelled some of those concerns on Monday,
saying Oracle "signed several large deals this quarter, and we
have many more in the pipeline".
(Reporting by Aditya Soni in Bengaluru; Editing by Pooja Desai)
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