Oracle's stock surged 5.14% during intraday trading on Monday, extending a rally fueled by its newly expanded partnership with Google Cloud and a broader upswing in artificial intelligence compute stocks.
The company announced on July 30 that it would embed Google's Gemini AI models into its Oracle Fusion Applications and Oracle NetSuite suites. Through the Oracle AI Agent Studio, enterprise customers will gain access to Gemini 3.1 Flash Lite and 3.5 Flash, bringing generative AI capabilities directly into existing workflows. Oracle shares had already climbed over 7% on the day of that announcement and have continued to push higher.
The AI compute sector broadly traded higher in the session, with CoreWeave, Nebius, and Amazon also posting gains. This sector-wide momentum, together with Oracle's previously disclosed near-$7 billion, 10-year U.S. Department of Defense software contract, has helped ease market concerns about the company's AI monetization path amid elevated capital spending.