{"id":47145,"date":"2026-05-14T04:17:10","date_gmt":"2026-05-14T04:17:10","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/47145\/"},"modified":"2026-05-14T04:17:10","modified_gmt":"2026-05-14T04:17:10","slug":"oracle-rises-as-ai-backlog-defends-capex","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/47145\/","title":{"rendered":"Oracle Rises as AI Backlog Defends Capex"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/1_ORCL1-1024x573.webp\" alt=\"\" class=\"wp-image-50115\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oracle traded at <strong>189.98<\/strong>, up <strong>4.13<\/strong>, or <strong>2.2%<\/strong>, after reaching a session high of <strong>191.43<\/strong>.<\/li>\n\n\n\n<li>Wedbush says Oracle\u2019s AI spending is backed by visible demand and long-term customer commitments, not speculative expansion.<\/li>\n\n\n\n<li>Oracle\u2019s capex-to-remaining performance obligation ratio sits near <strong>9%<\/strong>, well below the peer average of <strong>33.6%<\/strong>.<\/li>\n\n\n\n<li>AI enthusiasm remains strong across global markets, but hot inflation and higher rate expectations could still cap valuation upside.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>Oracle shares moved higher after Wedbush argued that traders may be misreading the company\u2019s AI spending cycle. The stock traded at <strong>189.98<\/strong>, up <strong>4.13<\/strong>, or <strong>2.2%<\/strong>, at <strong>05\/13 22:59:58 GMT+3<\/strong>. The session high stood at <strong>191.43<\/strong>, with a low of <strong>185.04<\/strong>, an open at <strong>188.14<\/strong>, and a close at <strong>185.85<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">To Wall Street, Oracle is a screaming buy. To many investors, however, the company\u2019s relationship with OpenAI, its sizable debt load and the durability of its software business have made owning the stock a risk. <a href=\"https:\/\/t.co\/KgcOAs4eZT\">https:\/\/t.co\/KgcOAs4eZT<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2050163328446537923?ref_src=twsrc%5Etfw\">May 1, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Wedbush framed Oracle\u2019s elevated capital spending as a strategic investment rather than a balance-sheet warning. The firm said Oracle is building a stronger position for the next phase of the AI cycle, where infrastructure, performance, and data access are becoming more important.<\/p>\n\n\n\n<p>Oracle\u2019s capex-to-remaining performance obligation ratio sits at about <strong>9%<\/strong>, against a peer average of <strong>33.6%<\/strong>, which suggests the company is spending against contracted demand rather than chasing uncertain growth.<\/p>\n\n\n\n<p>That gives the stock a clearer bull case. Oracle is not only selling a cloud story. It is trying to prove that its AI infrastructure buildout can convert backlog into revenue, customer retention, and margin expansion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Backlog Gives Oracle A Stronger AI Argument<\/h2>\n\n\n\n<p>Oracle\u2019s remaining performance obligations have become a core part of the investment case. Several recent analyst notes have cited Oracle\u2019s RPO at roughly <strong>$553 billion<\/strong>, giving traders a large pool of contracted revenue to track as cloud infrastructure demand scales.<\/p>\n\n\n\n<p>The capex debate now turns on execution. Heavy spending can hurt free cash flow in the short term, but it can also strengthen Oracle\u2019s position if AI workloads keep moving into large cloud contracts.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Michael Burry saying Anthropic was &quot;eating&quot; <a href=\"https:\/\/twitter.com\/search?q=%24PLTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$PLTR<\/a> was &quot;like fire in a crowded theater,&quot; Wedbush Securities managing director <a href=\"https:\/\/twitter.com\/DivesTech?ref_src=twsrc%5Etfw\">@DivesTech<\/a> says. <br><br>&quot;That is just stroking fear,&quot; but it creates a &quot;massive opportunity&quot; to own one of the key leaders in the AI revolution, he added. <a href=\"https:\/\/t.co\/438GPx9OPM\">pic.twitter.com\/438GPx9OPM<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/2042606823073538104?ref_src=twsrc%5Etfw\">April 10, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Wedbush\u2019s call supports the view that Oracle is spending to meet visible customer demand, not to build idle capacity.<\/p>\n\n\n\n<p>Traders will now watch whether that backlog turns into stronger cloud revenue. If Oracle can lift infrastructure growth while keeping margins under control, the market may reward the stock with a higher AI multiple. If capex rises faster than revenue conversion, the same spending that supports the bull case could become a valuation risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">AI Momentum Supports the Wider Tech Trade<\/h2>\n\n\n\n<p>Oracle\u2019s move fits a broader AI-led rally across global equities. Asia-Pacific stocks rose on Thursday as AI enthusiasm lifted chip-linked names, with the MSCI Asia-Pacific index gaining <strong>1.2%<\/strong> and South Korea\u2019s KOSPI rising <strong>1.7%<\/strong>. SK Hynix also moved closer to a <strong>$1 trillion<\/strong> market value, showing how strongly traders continue to price AI infrastructure demand.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Asia-Pacific stocks eye higher open as Trump lands in Beijing for high-stakes Xi meeting <a href=\"https:\/\/t.co\/Zqvs6eevSm\">https:\/\/t.co\/Zqvs6eevSm<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/2054711569594888617?ref_src=twsrc%5Etfw\">May 13, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The US market is also leaning into the same theme. The S&amp;P 500 and Nasdaq closed at record highs on Wednesday, boosted by AI-linked technology and chip stocks. The rally came despite hotter inflation data, which shows that traders are still giving AI earnings power more weight than rate risk for now.<\/p>\n\n\n\n<p>Oracle benefits from that backdrop because the market is rewarding companies that sit close to AI infrastructure spend. NVIDIA, <a href=\"https:\/\/www.vtmarkets.com\/opinion\/amd-stock-ai-growth-valuation-test\/\" target=\"_blank\" rel=\"noreferrer noopener\">AMD<\/a>, Oracle, cloud providers, and data-centre names all sit inside the same trade. The winners will need to prove that AI demand is not only strong, but also profitable.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong><em>Understanding the markets is the first step toward becoming a more confident trader. In our <a href=\"https:\/\/zoom.us\/webinar\/register\/6417787258141\/WN_EMGhsN4tRVWD7fx18c1B6w\">upcoming webinar<\/a>, we\u2019ll explore how US Indices work, what moves the market, and how beginners can approach trading with a structured mindset.<\/em><\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Inflation and Fed Risk Still Cap the Upside<\/h2>\n\n\n\n<p>The macro backdrop is less clean. US producer prices rose <strong>1.4%<\/strong> last month, the largest increase in four years, driven by oil disruption tied to the Strait of Hormuz. That data reduced hopes for near-term Federal Reserve cuts and raised the risk that rates may stay higher for longer.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">US producer prices surprise with largest increase in four years <a href=\"https:\/\/t.co\/unTPGuZW5T\">https:\/\/t.co\/unTPGuZW5T<\/a> <a href=\"https:\/\/t.co\/unTPGuZW5T\">https:\/\/t.co\/unTPGuZW5T<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2054625257672065200?ref_src=twsrc%5Etfw\">May 13, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Higher rates can pressure long-duration growth stocks, even when earnings momentum remains strong. Oracle\u2019s AI story provides support, but the stock still trades in a market sensitive to bond yields, inflation, and dollar strength.<\/p>\n\n\n\n<p>The Trump-Xi summit also sits in the background. Traders are watching the Beijing talks for signals on trade, technology, and the fragile US-China truce. A calmer tone could support technology shares. A tougher stance on trade or export controls could weigh on AI infrastructure names, especially those tied to chips, cloud capacity, and cross-border demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>Oracle is continuing to recover strongly from its April low near <strong>134.55<\/strong>, with the stock now trading around <strong>189.98<\/strong> as bullish momentum rebuilds across the AI infrastructure and enterprise cloud space. The broader chart structure has improved materially over the past month, although price is now approaching a key resistance zone just beneath the psychological <strong>200 level<\/strong>.<\/p>\n\n\n\n<p>Technically, Oracle remains in a constructive uptrend:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>MA5:<\/strong> 191.84<\/li>\n\n\n\n<li><strong>MA10:<\/strong> 185.28<\/li>\n\n\n\n<li><strong>MA20:<\/strong> 180.12<\/li>\n<\/ul>\n\n\n\n<p>The short-term moving averages are positively aligned above the 20-day average, while price itself continues to hold above the broader trend structure. That usually reflects sustained buyer control and healthy upside momentum.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/image-17-1024x474.jpg\" alt=\"\" class=\"wp-image-50114\"\/><\/figure>\n\n\n\n<p>Key levels to watch:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Immediate support:<\/strong> 185 \u2192 180<\/li>\n\n\n\n<li><strong>Major support:<\/strong> 175 \u2192 151<\/li>\n\n\n\n<li><strong>Resistance:<\/strong> 190\u2013199 \u2192 207.54<\/li>\n<\/ul>\n\n\n\n<p>The current region around <strong>190\u2013199<\/strong> is important because it marks the upper boundary of Oracle\u2019s recent rebound phase. Price briefly approached this zone earlier in May before pulling back, and the market is now attempting another breakout attempt.<\/p>\n\n\n\n<p>If buyers manage to clear the <strong>199\u2013200 resistance area<\/strong>, Oracle could retest the broader January high near <strong>207.54<\/strong>. A successful move above that level would likely considerably strengthen the longer-term bullish structure.<\/p>\n\n\n\n<p>On the downside, the first meaningful support cluster sits around the rising <strong>10-day and 20-day averages<\/strong> between <strong>180 and 185<\/strong>. As long as the stock continues holding above those trend lines, the broader recovery trend likely remains intact.<\/p>\n\n\n\n<p>The rally also reflects improving investor sentiment around Oracle\u2019s positioning within the AI ecosystem. Markets increasingly view Oracle as a growing infrastructure player benefiting from enterprise AI demand, particularly through its cloud partnerships, data centre expansion, and AI workload hosting capabilities.<\/p>\n\n\n\n<p>Recent market narratives around hyperscaler spending and AI infrastructure investment have helped support the stock alongside the broader semiconductor and enterprise software complex. Traders are also watching whether Oracle can continue translating AI-related demand into stronger cloud revenue growth over the coming quarters.<\/p>\n\n\n\n<p>Volume during the rebound phase has remained relatively steady rather than euphoric, which suggests the current move still resembles institutional accumulation rather than speculative exhaustion.<\/p>\n\n\n\n<p>For now, Oracle maintains a <strong>bullish near-term bias<\/strong> while holding above <strong>180<\/strong>, though the market faces an important technical test near the <strong>199\u2013200 resistance region<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cautious Forecast<\/h2>\n\n\n\n<p>Oracle keeps a constructive bias while it holds above <strong>185.28<\/strong> and <strong>180.12<\/strong>. A close above <strong>191.84<\/strong> would improve the short-term setup and support a move toward <strong>199.13<\/strong>.<\/p>\n\n\n\n<p>A break above <strong>199.13<\/strong> would strengthen the case for a retest of <strong>207.54<\/strong>, especially if AI infrastructure sentiment stays firm and traders keep rewarding backlog-backed capex. A drop below <strong>180.12<\/strong> would weaken the setup and suggest that macro pressure, rate risk, or capex concerns are starting to outweigh the Wedbush-backed AI narrative.<\/p>\n\n\n\n<p><strong>Create a live <a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets account<\/a> today to access our platform features, including market insights and educational content.<\/strong><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Trader Questions<\/strong><\/summary>\n<p><strong>Why Is Oracle Stock Rising?<\/strong><\/p>\n\n\n\n<p>Oracle stock is rising after Wedbush backed the company\u2019s AI spending strategy. The firm argued that Oracle\u2019s heavy capital spending is supported by visible demand and long-term customer commitments, rather than speculative expansion.<\/p>\n\n\n\n<p>ORCL traded at <strong>189.98<\/strong>, up <strong>4.13<\/strong>, or <strong>2.2%<\/strong>, after reaching a session high of <strong>191.43<\/strong>.<\/p>\n\n\n\n<p><strong>What Is The Current Oracle Stock Price?<\/strong><\/p>\n\n\n\n<p>Oracle traded at <strong>189.98<\/strong>. The session high stood at <strong>191.43<\/strong>, with a low of <strong>185.04<\/strong>, an open at <strong>188.14<\/strong>, and a close at <strong>185.85<\/strong>.<\/p>\n\n\n\n<p><strong>Why Is Oracle\u2019s AI Spending In Focus?<\/strong><\/p>\n\n\n\n<p>Oracle\u2019s AI spending is in focus because investors are debating whether high capex is a risk or a long-term advantage. Wedbush believes Oracle is building a stronger position for the next phase of the AI cycle, where infrastructure, performance, and data access carry more weight.<\/p>\n\n\n\n<p><strong>Is Oracle\u2019s AI Capex A Risk?<\/strong><\/p>\n\n\n\n<p>Oracle\u2019s AI capex can pressure free cash flow in the short term, but Wedbush sees the spending as backed by demand. Oracle\u2019s capex-to-remaining performance obligation ratio is about <strong>9%<\/strong>, compared with a peer average of <strong>33.6%<\/strong>.<\/p>\n\n\n\n<p>That lower ratio suggests Oracle is spending against a large backlog, not chasing uncertain demand.<\/p>\n\n\n\n<p><strong>What Does Oracle\u2019s Capex-To-RPO Ratio Mean?<\/strong><\/p>\n\n\n\n<p>Oracle\u2019s capex-to-RPO ratio compares capital spending with remaining performance obligations. A lower ratio can show that the company has a large contracted revenue base relative to its spending.<\/p>\n\n\n\n<p>Oracle\u2019s ratio of about <strong>9%<\/strong> compares favourably with the peer average of <strong>33.6%<\/strong>, supporting the view that its AI investment is more demand-backed.<\/p>\n<\/details>\n\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>Oracle gains as Wedbush backs AI capex, with cloud backlog, chip momentum and Fed risk in focus.<\/p>\n","protected":false},"author":38,"featured_media":47142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-47145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"featured_image_src":"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/ORCL1-600x400.webp","featured_image_src_square":"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/ORCL1-600x600.webp","author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/47145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=47145"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/47145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media\/47142"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=47145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=47145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=47145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}