The AI torch is being passed on from Nvidia to Oracle, according to the recent stock price rise. Oracle stock (NYSE: ORCL) jumped 36% on Wednesday and soared 48% in the last five days. Its counterpart, Nvidia (NASDAQ: NVDA), spiked less than 4% during the same timeframe. The tables are being turned in real-time, making way for the new AI builder to take the top spot.
Oracle is now close to $1 trillion valuation as the 48-year-old company added $200 billion to its market cap in a single day. The historic rally made founder Larry Ellison add more than $107 billion in net worth the same day, becoming the world’s richest man, elbowing Elon Musk. The market’s mood is now favoring Oracle over Nvidia as the stock is brimming with optimism.
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Is Oracle the New Nvidia in the Stock Market?
Oracle is heavily involved in the AI race, embedding generative and predictive response applications. They are collaborating with companies like OpenAI for infrastructure and providing tools to build and customize AI agents. They also host Oracle AI World and are moving a step ahead of Nvidia in the race, heating its stock price.
Taking an entry position now in Oracle stock instead of Nvidia could prove beneficial. Nvidia is embroiled in tariffs as more than 50% of its clients are from overseas. The development is eating up its revenues, making its balance sheet lose out on a chunk of value.
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“Oracle’s Q1 represents not only the biggest bookings number we’ve ever seen in software, but a fundamental shift in the business model towards Data Center Operator,” said Morgan Stanley analyst Keith Weiss. This makes Oracle a clear winner above Nvidia in the ongoing AI stock market race. In conclusion, taking an entry position in Oracle now could prove beneficial as the long-term prospects look promising.