Trump--Xi Call Could Lock In Oracle's TikTok Cloud Deal--and Spark Another Rally

Oracle ORCL shares jumped nearly 6% on Tuesday, fueled by signs that a long-delayed resolution over TikTok's U.S. operations may be within reach. President Donald Trump said he's secured a tentative agreement with China and plans to speak directly with President Xi Jinping on Friday to finalize terms. Under the framework being discussed, Oracle would remain TikTok's core U.S. cloud partnera role it's held since the platform began navigating intensifying scrutiny from U.S. lawmakers. The deal, according to CNBC, could close in 30 to 45 days.

This isn't just about politicsit's about a critical customer. TikTok was one of Oracle's earliest wins in cloud, choosing the company not just for its infrastructure but for its perceived security alignment and deep ties to Republican leadership at the time. That relationship birthed Project Texas, an effort to silo U.S. user data away from Chinese parent ByteDance. By 2022, TikTok had routed all domestic traffic through Oracle servers. With the new deal potentially cementing that setup, analysts at Evercore ISI say the removal of uncertainty around TikTok could act as a fresh catalyst for Oracle's stock.

It would be the latest in a string of tailwinds. Oracle's cloud bookings surged last week, buoyed by demand from AI-native giants like OpenAI and Nvidia. The stock is already up 85% this year, thanks to rising conviction around its infrastructure pivot. If the TikTok contract is formally renewed, it could reinforce Oracle's position as a go-to national-security-grade cloud providerone with both political staying power and growing relevance in the AI era.