Oracle Corporation's stock climbed 5% on Thursday, extending a sharp rally driven by a strategic multicloud expansion with Amazon Web Services and a broader recovery in software stocks. The company announced plans to enhance its multicloud networking capabilities, enabling enterprise-grade connectivity between Oracle Cloud Infrastructure (OCI) and AWS. This integration will link Oracle Interconnect with AWS Interconnect, allowing customers to run applications and move data seamlessly across both cloud environments through a private, high-performance connection.
Nathan Thomas, senior vice president of product management for OCI, stated, "Oracle continues to advance multicloud connectivity as part of its commitment to helping customers unlock flexibility, agility, and performance across clouds." The AWS Interconnect–multicloud integration is expected to be available later this year in the AWS US East (N. Virginia) region.
The rally reflects a sector-wide rebound. The iShares Expanded Tech-Software Sector ETF has risen 5.4% this week, outperforming the S&P 500. Earlier investor concerns that emerging AI tools could disrupt traditional software business models have shifted toward how companies can leverage AI for growth. Oracle shares have surged around 30% over the past five days.
This optimism is bolstered by Oracle's massive $553 billion in remaining performance obligations, reported in its fiscal Q3 2026 results, representing a 325% year-over-year increase. This backlog, driven by cloud and AI infrastructure demand, signals significant locked-in future revenue as Oracle repositions from a legacy database company to a cloud infrastructure player focused on AI workloads.
Further supporting its strategic pivot, Oracle recently announced significant job cuts to reallocate resources toward AI infrastructure and data centre expansion. Analysts at Barclays viewed the restructuring positively, noting it could free up capital and improve efficiency. Barclays suggested Oracle could potentially triple its revenue over the next few years, supported by lower operating costs and increased AI service demand.
