Larry Ellison, cofounder and chief technology officer of Oracle, saw his fortune swell by $12.4 billion on Tuesday, thanks to Wall Street’s growing conviction that artificial intelligence infrastructure will reshape the technology sector.
The 80-year-old billionaire now has a net worth of $301.7 billion, ranking him the second-richest person in the world, according to Forbes’ real-time wealth tracker.
The jump in Ellison’s wealth came as Oracle shares rose 1.24 % to $255.67 after Bank of America raised its price target for the software giant to $295 from $220.
The firm cited robust capital expenditure guidance from technology heavyweights Microsoft and Meta as a signal that demand for AI infrastructure is accelerating, positioning Oracle as a key beneficiary.
Microsoft, in its latest forecast, projected more than $30 billion in capital spending for the September quarter, significantly higher than earlier estimates of $23.5 billion. Meta raised its full-year guidance to $69 billion, up from the bank’s $67 billion forecast. Reports described these figures as “demand signals into a large addressable market for AI infrastructure,” estimating the agentic AI sector alone at $155 billion, which they called “8 % additive” to the total addressable market for software.
The optimism is the latest validation for Ellison’s decades-long strategy of pushing Oracle beyond its legacy database business. Under his watch, Oracle has expanded aggressively into cloud services, often through acquisitions. Its largest deal came in 2021, when the company purchased electronic health records provider Cerner for $28.3 billion.
What we know about Ellison
Ellison, who relinquished the chief executive role in 2014 after 37 years, has remained deeply involved as chairman and chief technology officer. He still owns roughly 40 % of Oracle, giving him an outsized stake in the company’s future.
The billionaire is also known for his unconventional lifestyle. In 2012, he bought nearly the entire Hawaiian island of Lanai for $300 million and moved there permanently in 2020. Beyond Oracle, Ellison served on Tesla’s board between 2018 and 2022, amassing a stake of about 45 million split-adjusted shares before stepping down.
Despite the rosy projections, Bank of America reiterated a “Neutral” rating on Oracle, pointing to limited clarity around how much the AI infrastructure boom will translate into actual revenue gains. The bull/bear debate on the stock centers on how material the AI infrastructure opportunity is for Oracle and the magnitude of upside to topline growth targets, according to reports.
