Oracle Soars to Biggest Gain in 33 Years... Ellison Becomes World's Richest Person Intraday

AI Semiconductor Stocks Surge Together
Nvidia Up 3.9%, Broadcom Soars 9.8%

Shares of the American software company Oracle recorded their largest single-day gain in 33 years. As a result, Oracle Chairman Larry Ellison briefly surpassed Tesla CEO Elon Musk to become the world's richest person during intraday trading, thanks to the sharp rise in the value of his holdings.

On September 10 (local time) on the New York Stock Exchange, Oracle shares closed at $328.33, up 35.91% from the previous day. This surge marks the largest daily increase for Oracle since its founding in 1977 and the biggest since 1992, 33 years ago. The company’s market capitalization reached $922.2 billion, approaching the $1 trillion mark.

According to Bloomberg, its Billionaires Index showed that as of 10:10 a.m. that day, Oracle Chairman Ellison's net worth had reached $393 billion, overtaking CEO Musk, whose net worth stood at $385 billion, to become the world's richest person. However, the UK’s Guardian reported that by the close of trading, Oracle had given back part of its gains, allowing CEO Musk to reclaim the top spot.

Oracle, known for its strength in the database sector, has significantly expanded its cloud business in the era of artificial intelligence (AI). In its quarterly earnings report the previous day, Oracle announced that its Remaining Performance Obligation (RPO)-referring to contracted revenue yet to be fulfilled-in its cloud infrastructure segment had soared to $455 billion, a 359% increase compared to the same period last year. The company also stated that cloud infrastructure revenue grew 77% in the current fiscal year to $18 billion, and projected that this figure would increase eightfold to $144 billion in four years.

Additionally, The Wall Street Journal (WSJ) reported that Oracle had signed a $300 billion computing power supply contract with OpenAI, the developer of ChatGPT. WSJ noted that this is one of the largest cloud deals ever, and despite concerns of an AI investment bubble, data center spending has reached record highs.

Deutsche Bank assessed that Oracle’s strengths in computing infrastructure and its diverse product portfolio are helping it maintain a competitive edge in the AI era. Citibank also described Oracle’s quarterly results as "one of the strongest we have seen across the entire software industry," and called Oracle "the unrivaled AI winner."

Alongside Oracle’s surge, other semiconductor stocks also rose across the board. Nvidia, the largest by market capitalization, closed up 3.85% at $177.33, approaching the $180 level again. Broadcom, an American semiconductor company developing custom AI chips with firms like OpenAI, soared 9.77%. Taiwan’s TSMC, the world’s largest semiconductor foundry, climbed 3.79%. Shares of AMD and Qualcomm also rose by 2.39% and 0.17%, respectively. As a result, the Philadelphia Semiconductor Index, which tracks semiconductor-related stocks, closed up 2.38% from the previous day.

This content was produced with the assistance of AI translation services.