Larry Ellison Hits New Wealth Milestones Amid Oracle's Unprecedented Stock Rally

This year, Larry Ellison has amassed more wealth than anyone else, and his fortune continues to escalate parallel to Oracle's rising stock values.

As of Tuesday's market closure, Ellison, the cofounder of the enterprise software giant, stood as the world's second-richest individual with a staggering wealth of $295 billion, trailing only behind Elon Musk, Tesla's head, whose net worth hits $384 billion according to the Bloomberg Billionaires Index.

Ellison, at the age of 81, leads the list of wealthiest individuals with an increase of $103 billion since the beginning of the year—this gain surpasses the entire market value of Starbucks, pegged at $95 billion. Driven by the AI buzz, Oracle's share price has surged by 45% by Tuesday.

In just under three years, the Oracle chairman’s net worth has increased more than threefold—from about $80 billion in October 2022—thanks to Oracle shares climbing from below $70 to over $240 by Tuesday.

Investors celebrated Oracle's positive revenue outlook, driven by strong AI demand, during after-hours trading on Tuesday in New York, Oracle's main listing venue.

Ahead of the US market's opening on Wednesday, Oracle shares shot up by 32% in Frankfurt, Oracle's additional listing location, where trades generally occur at lower volumes. At 7:30 a.m. ET, shares rose 33% on the New York Stock Exchange.

Anticipated Growth and Revenue Projections

Oracle's CEO, Safra Catz, projected in the company’s first quarter earnings report that the Oracle Cloud Infrastructure revenue is expected to surge by 77% this fiscal year, reaching $18 billion. Looking further, it is estimated to ascend to $32 billion, $73 billion, $114 billion, and eventually $144 billion across the next four years. Previously, Oracle boasted a total revenue of approximately $57 billion last financial year.

Financial Impact and Market Comparisons

Due to the 32% surge, Ellison’s Oracle stake value inflated by an estimated $90 billion, achieving around $370 billion. This one-day increase is comparable to Moody’s market valuation of $91 billion.

Bloomberg estimates Ellison's wealth more conservatively due to him pledging about a quarter of his Oracle shares as security for personal loans. Consequently, the wealth tally partially excludes these pledged shares to compute his net worth.

Previously, Ellison acquired approximately 1.6% of Tesla before joining its board in December 2018—an investment now valued over $15 billion. However, following his departure from the board in 2022, he's no longer required to disclose his stake.