Oracle Shares Surge on Amazon's $200B AI Investment and Analyst Upgrade

Oracle (ORCL) shares jump nearly 10% as the company benefits from Amazon’s massive $200 billion investment in AI infrastructure and a bullish analyst upgrade. The stock emerges as the day’s top performer, countering recent concerns about leverage, finance costs, and execution risk.

Market Reaction to Amazon's AI Spend

The rally in Oracle's stock comes after Amazon announces plans to invest approximately $200 billion this year in data centers, chips, and related hardware. This significant investment lifts sentiment across the tech sector, providing Oracle with a much-needed boost. Despite the surge, Oracle shares remain down roughly 30% year to date and nearly 50% from their September 2025 highs.

Analyst Upgrade Fuels Optimism

DA Davidson upgrades Oracle to Buy from Neutral and raises its price target to $180. The firm cites improving confidence in the broader AI ecosystem and suggests that a 'revamped OpenAI' could emerge stronger, maintaining competitive pressure on Google and other AI leaders. Analysts at DA Davidson also note that OpenAI now has sufficient funding to meet its contractual obligations to Oracle, reducing one of the most significant risks facing Oracle’s AI strategy.

Industry Context and Implications

Major technology players, including Amazon, Meta, Alphabet, and Microsoft, are collectively expected to spend more than $650 billion on AI tools, infrastructure, and data centers over the coming years. Some market participants believe Oracle could capture a meaningful slice of that spending, particularly as enterprises look for alternative cloud providers capable of supporting large-scale AI workloads.

Technical Analysis and Future Outlook

From a technical perspective, Oracle’s price action shows mixed signals. On longer-term charts, the stock has slipped below the 20 monthly moving average (gray) that previously acted as support, increasing the risk of deeper pullbacks. However, the 50 SMA (yellow) held as support this time. On shorter timeframes, rebounds have consistently failed near resistance levels, forming a clear pattern of lower highs. For the uptrend to resume, buyers will need to push above all other MAs; otherwise, a reversal lower is likely if they fail to break higher.

References

• Oracle Stock Rebounds on Amazon AI Spending and Analyst Upgrade but Is That Enough? - Forex News by FX Leaders