Oracle Corp (NYSE:ORCL) shares are gaining ground on Tuesday morning. The move follows a dip during Monday’s session driven by geopolitical jitters.
Analyst Highlights AI Backlog
DA Davidson analyst Gil Luria remains focused on the software giant’s massive scale. Luria noted Oracle is well-positioned to capture AI demand.
The company currently maintains a backlog of approximately $550 billion. Luria told CNBC that Oracle’s core software business effectively funds its expensive data center build-out.
Capital Spending Strategy
Investors are tracking Oracle’s aggressive pivot toward AI infrastructure. The company has cut 20,000 to 30,000 jobs to streamline operations as these savings directly support the expansion of AI-ready data centers.
Market Sentiment Shifts
Broad markets are showing signs of recovery on Tuesday. Nasdaq futures rose 0.43%, while S&P 500 futures gained 0.36%. This follows Monday’s volatility tied to U.S.-Iran tensions and rising oil prices.
Technical Analysis
Oracle is rebounding off the lower half of its 52-week range after peaking in September. The stock is trading 18.2% above its 20-day simple moving average (SMA) and 4.7% above its 100-day SMA.
The relative strength index (RSI), a momentum gauge, is at 69.70.
Over the past 12 months, the stock is up 44.59%, which shows the longer-term tape has still rewarded holders despite the big drawdown from the $345.72 high.
The key tension is that price remains 16.6% below the 200-day SMA.
- Key Resistance: $208
- Key Support: $177
ORCL Stock Price Activity: Oracle shares were up 0.87% at $179.12 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo: Piotr Swat / Shutterstock
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