Oracle Stock Jumps on TikTok Deal Hopes and Cloud Momentum

Oracle (ORCL) shares climbed Tuesday as reports surfaced of a preliminary U.S.-China agreement that could keep TikTok operating in the U.S. under American oversight. 

The news adds to a string of catalysts that have fueled a powerful rally for Oracle in 2025.

Key Points

1. Oracle is part of a consortium positioned to play a role in TikTok’s U.S. operations if a deal is finalized.
2. The company’s cloud backlog surged to nearly $455 billion, reflecting booming AI-driven demand.
3. Oracle stock has gained 81% this year, cementing its position as a major challenger in the cloud market.

TikTok Deal Sparks Investor Optimism
Oracle stock jumped as much as 5% in premarket trading after officials from the U.S. and China signaled progress on a framework to resolve TikTok’s future in America. Treasury Secretary Scott Bessent confirmed the outlines of an agreement, with final details expected after President Donald Trump and China’s Xi Jinping meet later this week.

Oracle is widely viewed as a front-runner to play a key role in managing TikTok’s U.S. operations. The company already provides cloud infrastructure through “Project Texas,” which stores TikTok’s American user data on Oracle servers. A finalized deal could deepen that relationship, boosting Oracle’s cloud credibility.

Cloud Backlog Hits Half a Trillion
Beyond the TikTok headlines, Oracle has been winning attention for its cloud momentum. The company’s contracted backlog of work jumped from $138 billion last quarter to nearly $455 billion — a staggering increase that underscores soaring demand for AI-focused infrastructure.

Analysts at Jefferies described Oracle as “a new force in the cloud wars,” joining the ranks of Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN). They argue Oracle’s cloud infrastructure offers strong price-for-performance advantages, making it an attractive choice for AI-driven workloads.

This demand has already translated into significant stock gains. Shares have surged more than 80% in 2025, including a 36% jump last week following Oracle’s bullish long-term revenue projections.

A Stock Fueled by AI and Strategic Bets
Oracle’s rise this year is also tied to partnerships and major AI initiatives. The company is linked to OpenAI through a $300 billion deal that could fuel future cloud growth, and it has partnered with Bloom Energy to power its AI data centers with alternative energy solutions.

At the same time, Oracle is navigating challenges, including the enormous capital required to expand its global network of AI-ready data centers. Investors will be watching closely to see how Oracle balances growth with financial discipline.

Conclusion
Oracle’s stock surge reflects more than just excitement over a potential TikTok deal. With a massive backlog of AI-driven cloud contracts and growing recognition as a contender in the “cloud wars,” the company has emerged as one of 2025’s standout tech stories. While execution risks remain, particularly around funding data center expansion, Oracle is positioning itself at the center of two of the decade’s defining growth trends: artificial intelligence and cloud computing.

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