Oracle Stock is Having Its Best Day Since September, Thanks to Trump

Cloud software giant Oracle (ORCL) is off to a strong start this holiday-shortened week, with the shares up more than 5.8% this Tuesday afternoon. Even with the broader market in rally mode today, supported by President Trump’s tame approach to tariff policy so far, ORCL stock still stands out as a notable gainer.

Trump himself is a key player in Oracle’s rise, and for more reasons than one. The company's role as the primary cloud provider for TikTok in the U.S. has been a hot topic lately, with the president’s Day 1 delay of the TikTok ban contributing to ORCL’s positive momentum.

Investors are also now cheering Oracle's reported involvement in President Trump's new artificial intelligence (AI) infrastructure investment initiative, known as “Stargate.” The joint venture, which includes major tech companies Softbank (SFTBY) and OpenAI, calls for an initial investment of $100 billion in AI, with room to scale up to $500 billion over the next four years.

Valued at $450.39 billion, ORCL stock has rallied an impressive 56.5% over the past 52 weeks. The shares have corrected 13% from their December highs - but thanks to today's surge, they're currently on pace to close above their 20-day moving average for the first time since last month’s earnings-related bear gap. The 50-day moving average, at $175.93, is still overhead.

Despite the stock’s sharp decline following its earnings release, Oracle's strong free cash flow and undervaluation suggest potential for future growth, with analysts projecting about 14% upside to the average target price. For traders with the appropriate experience level (and risk appetite), here’s one options trade to consider on ORCL stock now.