Oracle’s sharp reversal highlights the market’s sensitivity to fundamentals after the PPI-driven selloff. Cloud infrastructure growth of 121% and RPO reaching $664 billion indicate strong demand visibility, particularly from AI-related workloads. The raised FY2027 revenue outlook of at least $90 billion further supports expectations of sustained growth. However, the after-hours rally also reflects elevated expectations, leaving execution, capacity expansion and AI spending durability as key factors. Investors may therefore weigh Oracle’s improving growth trajectory against valuation risk and the possibility of greater volatility as expectations become increasingly demanding.