Oracle’s rapid climb in market value has brought co-founder Larry Ellison closer than ever to the title of world’s richest person, though Elon Musk still holds the top spot. After a historic surge on Wednesday that pushed Oracle shares up by nearly 36%, the company briefly hit a record valuation of $933 billion. However, shares retreated 4% on Thursday, trimming its value to about $894 billion.
How close is Larry Ellison to overtaking Elon Musk?
Ellison’s net worth now stands at roughly $371.7 billion, thanks largely to his 41% stake in Oracle. This puts him within reach of Musk, whose fortune sits at $441.2 billion according to Forbes’ global wealth rankings. The massive gap between the two narrowed sharply following Oracle’s AI-driven growth, fueled by a series of billion-dollar cloud computing deals.
Market analysts suggest the pullback in Oracle’s stock is temporary. “A bit of buyer exhaustion here. I think the ‘buy the dip’ crowd is likely to re-emerge,” said Dennis Dick, chief strategist at Stock Trader Network. “The guidance was so incredible, hard to think that this story is over.”
What is driving Oracle’s AI surge?
Oracle announced that its order backlog is set to hit half a trillion dollars in the coming months, underscoring the scale of demand for its services. The Wall Street Journal also reported that OpenAI has signed a $300 billion deal with Oracle for computing power, one of the largest agreements in history.
This momentum has nearly doubled Oracle’s stock price in 2025, making it one of the best performers in the S&P 500 and outpacing the so-called Magnificent Seven tech giants.
Oracle shares are currently trading at a premium compared to cloud peers. Its 12-month forward price-to-earnings multiple stands at 45.3, ahead of Amazon’s 31.3 and Microsoft’s 31. According to LSEG data, the median price target for Oracle is $342, suggesting a potential upside of 9% from its current $314.45.
While Musk remains firmly on top of the wealth rankings for now, Ellison’s AI-fueled rise signals a shifting balance among the world’s wealthiest tech leaders.
By Risper Akinyi
