Shares of Oracle (ORCL 0.56%) are flying higher on Wednesday. The company's stock is up 6.4% as of 11:20 a.m. ET, but gained as much as 11.3% earlier in the day. The sharp move came as the S&P 500 and the Nasdaq Composite gained 0.7% and 1.3%, respectively.
Oracle is at the heart of Project Stargate, the new artificial intelligence (AI) initiative announced by President Trump on Tuesday. The company is also benefiting from recent developments in the TikTok ban saga.
President Trump unveils Project Stargate
One of the more high-profile initiatives that came out of the last two days, Project Stargate will pour billions of dollars into AI infrastructure in order to keep America's edge in the potent technology. The program, coordinated by Trump's team, will include $500 billion in private investment between Softbank, OpenAI, and Oracle. Oracle's CEO, Larry Ellison, was present at the announcement.
This comes the day after President Trump signed an executive order loosening regulations on the AI industry, further helping to boost Oracle's stock.
President Trump delays the TikTok ban
The uber-popular social media platform TikTok went dark last week after the Supreme Court upheld a federal ban. On Monday, however, President Trump directed the attorney general not to take any action to enforce the law for at least 75 days. It's unclear if this executive order is legal and will hold up over time, but for now, the ban is delayed.
As Tiktok's primary cloud provider, Oracle's stock was boosted by the move.
