Oracle (ORCL) has pledged a $5 billion investment plan over the next five years to expand its Oracle Cloud Infrastructure (OCI) presence in the UK. Meanwhile, the investment supports the UK government’s vision for AI innovation and adoption. Interestingly, Oracle’s co-founder, Larry Ellison, is a close ally of U.S. President Donald Trump, while UK Prime Minister Keir Starmer aims to secure a post-Brexit trade deal with the U.S.
Last week, reports indicated that Oracle has become a leading contender to manage TikTok under a deal being headed by President Trump to comply with last year’s ban on the Chinese app. ORCL stock has gained over 6% over the last five days, fueled by speculation surrounding the potential TikTok deal.
Oracle to Expand its Cloud Reach
Oracle is expanding its cloud infrastructure in the U.K. as part of its broader growth strategy. CEO Safra Catz said the company plans to double its cloud capacity this year and triple it by mid-2026.
Over the past year, Oracle has increased its cloud presence from 68 to 101 regions by using smaller deployments compared to other major cloud providers. Chairman and CTO Ellison explained that Oracle starts with smaller setups and adds more capacity as demand grows, helping the company use its resources more efficiently.
Moreover, Oracle has recently launched over 50 AI-powered assistants within its Fusion Cloud Applications Suite to automate routine tasks in finance, supply chain, HR, sales, marketing, and customer service. These AI agents help businesses streamline operations, allowing employees and managers to focus on more strategic initiatives.
Notably, the latest UK investment will enable more organizations in the UK to leverage Oracle’s AI agents for greater efficiency and productivity.
Is Oracle a Good Stock to Buy Now?
Overall, ORCL stock scores Wall Street’s Moderate Buy consensus rating based on 13 Buys and 12 Holds. The average Oracle share price target of $179.95 indicates about 16.8% upside potential from current levels.
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