Oracle (ORCL) stock reset its all-time high when Nvidia and AMD flagships of the AI-fuelled rally stumbled for a rather sharp price adjustment. A healthy process of technical correction from considerably overbought positions took Nvidia share price off the road to throw it down to a $850 area, after it stopped nearly $25 away from its $1000 dream number. The same powerful wave of profit taking quickly led the share price of Advanced Micro Devices from its recent intraday historical peak at $227.30 to $198.40 to form a double-digit percentage range of variation in the beginning of the week. Meanwhile, a hyping place is never empty, so that Oracle jumped by more than 13% in the pre-market trading on March 12 beating quarterly sales and marginality consensus expectations.

A bright representative of the AI-based cloud segment faced strong corporate demand. This upside move also inspired many rating upgrades from various large investment banks. "Oracle Cloud momentum is back on track after witnessing disappointing cloud results in the prior two quarters," analysts at Piper Sandler argued, as an example. Being a database giant itself, Oracle is reinventing itself as a cloud-computing provider trying to deliver cheaper services compared to the segment's peers like Amazon by making close partnership with ChatGPT-associated Microsoft, successfully adjusting Oracle's cloud features to more powerful and actually exclusive supercomputers by Nvidia as the AI chip producing leader. So, Oracle is pitching itself as a low-cost cloud provider and thus receiving more contracts to reserve cloud infrastructure capacities when the demand for generative AI infrastructure is growing fast. Oracle signed "several large deals this quarter, and we have many more in the pipeline", its CEO Safra Catz said during a conference call.

Thanks to Oracle customers' indirect access to Nvidia facilities, Oracle posted a 25% growth in its cloud revenue YoY in the quarter. What is also important it’s remaining performance obligations or sales backlog in other words that rose by almost 30%. At least 15 large analyst houses raised their targets on Oracle to the average price view of $135.50. Yet, we expect Wall Street crowds are not going to rest until testing the range between $145 and $150, judging by recent dynamics of other cloud or chip stocks which previously had a good fortune to capture the market attention. These kinds of projections may also serve as an important indicator to reveal a transient nature with regard to selective acts of price corrections in several AI trend makers.