Oracle’s Valuation Outpaces Nvidia as Bubble Talk Returns
Oracle’s AI-fueled surge tests investor faith as valuations echo dot-com heights

Oracle has become the unexpected star of Wall Street in 2025. The company’s shares have surged an astonishing 84 percent this year, making it one of the best performers in the S&P 500. The spark? Artificial intelligence. Once viewed as a conservative software stalwart, Oracle is now at the center of the AI gold rush. Its cloud business, powered by a flood of demand for AI computing, has transformed the company into one of the market’s hottest tickets.
The latest jolt came on September 10, when Oracle projected that its cloud revenue would jump an eye-popping 700 percent over the next three fiscal years. That single forecast catapulted its stock 36 percent in one day, a move that instantly stirred comparisons with the euphoric rallies of the dot-com bubble.
Valuations in the Stratosphere
Oracle’s rise hasn’t just been about growth; it’s also been about valuation. At 43 times estimated earnings, the company is now trading at its highest multiple since the dot-com era. To put that in perspective, Nvidia, the undisputed darling of AI, trades at 31 times forward profits even as its current sales growth dwarfs Oracle’s. The gap reveals a market betting heavily on what Oracle might achieve rather than what it has already proven.
That disconnect has drawn skepticism from analysts. Michael Bailey of Fulton Breakefield Broenniman put it bluntly: investors are buying Oracle on the “hope” of massive growth that will materialize only in years four, five, and six. It’s a gamble that today’s lofty valuation already prices in tomorrow’s success.
