Oracle Forges Direct Cloud Link with AWS, Igniting Stock Surge

A strategic cloud partnership between Oracle and Amazon Web Services is dismantling a major barrier for corporate AI development, sending Oracle's shares soaring. The direct connectivity between Oracle Cloud Infrastructure and AWS aims to solve the persistent issue of data gravity, where information becomes trapped on a single platform due to the cost and complexity of moving it.

The alliance provides a high-speed, private network link that bypasses the public internet, offering bandwidths of up to 100 gigabits per second. Crucially, Oracle will not charge data transfer fees for using this connection. This is particularly vital for complex AI workloads that often require a split architecture, such as using a high-performance Oracle database while training models on AWS SageMaker, a setup previously hampered by latency.

Operational momentum underpins this expansion. Oracle's cloud infrastructure revenue surged 84% year-over-year last quarter, with its multicloud database business seeing triple-digit percentage growth. The company's total remaining performance obligation, a measure of its backlog, exploded to $553 billion, a 325% increase from the prior year. Management has subsequently raised its revenue outlook for fiscal year 2027 to $90 billion.

This aggressive growth strategy carries significant capital costs. Massive investments in AI infrastructure have driven Oracle's debt load to over $124 billion. Concurrently, the company is securing immense power capacity to fuel its data centers, recently extending a contract with Bloom Energy for up to 2.8 gigawatts of electricity.

On the markets, the AWS news triggered a powerful rally. Oracle's stock price jumped over 26% on a weekly basis to 150.14 euros, also gaining 3.82% in Thursday's session alone. While the move pushed the share price above its 50-day moving average, it remains far from its 52-week high near 280 euros.

The technical integration with AWS is set to begin this year, starting in the US East region in Northern Virginia. This move fills the last major gap in Oracle's multicloud strategy, following similar physical integrations already established with Microsoft Azure and Google Cloud. Beyond infrastructure, Oracle continues to score wins in enterprise software, recently being named a leader by Gartner in transportation management systems for its AI-powered supply chain optimization tools.

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Oracle Forges Direct Cloud Link with AWS, Igniting Stock: New Analysis - 17 April

Fresh Oracle Forges Direct Cloud Link with AWS, Igniting information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Oracle Forges Direct Cloud Link with AWS, Igniting analysis...