Larry Ellison, co-founder and chief technology officer of Oracle, saw his net worth jump by $12.4 billion on Tuesday. This rise is linked to the growing belief on Wall Street that AI infrastructure will transform the tech industry.
Ellison, aged 80, now has an estimated net worth of $301.7 billion, making him the world’s second-richest person, according to Forbes’ real-time tracker. This increase happened as Oracle’s shares climbed 1.24% to $255.67, following Bank of America’s decision to raise its price target for the company from $220 to $295.
The bank’s upgrade was based on strong capital spending forecasts by tech giants Microsoft and Meta. Microsoft expects to spend over $30 billion in the coming quarter on tech infrastructure, much higher than previous estimates. Meta also raised its spending forecast to $69 billion for the year.
Oracle’s growth shows Ellison’s long-term strategy to shift the company beyond its traditional database business into cloud services and AI. In 2021, Oracle made a major acquisition by buying electronic health records company Cerner for $28.3 billion.
Though Ellison stepped down as CEO in 2014, he remains deeply involved in Oracle as chairman and CTO, holding about 40% ownership in the firm. Outside Oracle, he is known for his unique lifestyle, including owning almost all of the Hawaiian island of Lanai and previously serving on Tesla’s board.
Despite optimistic market views, Bank of America kept a “Neutral” rating on Oracle stock, citing uncertainty about how much the AI infrastructure boom will actually boost Oracle’s revenues.
