Oracle (NASDAQ: ORCL) stock has exploded on Wall Street, but CNBC’s Mad Money host Jim Cramer believes the frenzy has the hallmarks of meme-stock trading.

The surge comes as Oracle reported a staggering $455 billion in remaining performance obligations, a 359% year-over-year increase fueled largely by AI-related cloud contracts.

As a result, the stock spiked nearly 32% in pre-market trading on Tuesday to $318. ORCL shares had closed the previous session at $241, up about 1.2%.

In a series of X posts on September 10, Cramer noted that institutional traders are behaving unusually in this case. Instead of disguising their intentions and waiting for liquidity, investors are sweeping Oracle shares in a fashion reminiscent of the Gamestop mania.

“Institutional traders typically don’t “sweep” stocks like they are doing to Oracle right now. They step away, they wait for offerings to build. They disguise their intentions. These buyers are like meme buyers,” he said. 

Impact on the broader AI sector 

He also observed that Oracle stock buying isn’t spilling over to suppliers such as Nvidia or AMD, raising questions about whether the broader AI supply chain will benefit from Oracle’s boom.

Investor interest in Oracle is largely driven by its cloud infrastructure business, where revenue is expected to jump 77% this fiscal year to $18 billion from $10 billion.

Forecasts point to further explosive growth, potentially reaching $144 billion in just four years. This AI-driven momentum has sparked a massive market revaluation, with Oracle’s market value on track to rise by about $200 billion, pushing it closer to the trillion-dollar mark.

Wall Street has also turned bullish on Oracle stock, with analysts impressed by the company’s latest earnings.

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