Oracle Corp (NYSE:ORCL) shares are trading higher on Tuesday. The rally follows a strategic win with the Department of Defense.

Nasdaq futures are up 0.79% while S&P 500 futures have gained 0.52%.

Defense Deal Drives Momentum

Oracle secured a contract to deploy AI on classified networks. The deal aims to enhance military decision-making. Company executives stated the partnership “aligns with efforts to maintain U.S. leadership in AI and national security.” This move cements Oracle's position in high-performance government infrastructure.

Massive Hyperscaler Spending Forecasts

Analysts see a major wave of capital expenditures benefiting the firm. Morgan Stanley expects major hyperscalers to spend $805 billion in 2026. This figure could reach $1.1 trillion in 2027. Former White House advisor David Sacks noted AI spending could contribute over 3% to GDP growth next year.

Wall Street Dismisses OpenAI Risks

Despite recent market volatility, investors remain bullish. Michael Monaghan of Founder ETFs told Bloomberg that the market is “underestimating Oracle’s role in AI infrastructure.”

He says investors are overreacting to OpenAI-related noise.

Laffer Tengler Investments analyst Nancy Tengler dismissed concerns regarding Oracle’s debt levels. She cited the company’s historical ability to manage leverage.

Critical Levels To Watch for ORCL Stock

Oracle is trading 10.4% above its 20-day SMA ($165.83) and 17.3% above its 50-day SMA ($156.12), which keeps the intermediate trend pointed up after the April swing low.

At the same time, it remains 13.6% below the 200-day SMA ($211.98). The longer-term backdrop is mixed: the 20-day SMA is above the 50-day SMA (bullish), but the death cross from January (50-day SMA below the 200-day SMA) is still a reminder that the bigger trend has been repairing rather than fully reset.

  • Key Resistance: $189
  • Key Support: $170.50

ORCL Stock Price Activity: Oracle shares were up 1.70% at $183.36 during premarket trading on Tuesday, according to Benzinga Pro data.

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