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Oracle Stock Surges as Analysts Predict Further Gains Fueled by AI Demand
NEW YORK – Oracle shares are climbing following a stellar first fiscal quarter, prompting Wall Street analysts to significantly raise their price targets amid expectations of sustained growth driven by burgeoning demand for artificial intelligence infrastructure. Deutsche Bank analysts called the results “one of the strongest” they’ve seen in nearly 20 years covering the software industry, citing a record $455 billion backlog-more than four times larger than the previous year.
The surge is attributed to a wave of new contracts,including four “multibillion-dollar” deals secured in the first quarter,with CEO Safra Catz anticipating several more in the coming months. Speculation is mounting over a potential massive deal with OpenAI, with the Wall Street Journal reporting a commitment of $300 billion for computing power over five years beginning in 2027, though neither Oracle nor OpenAI have commented on the report.Analysts believe Oracle’s robust infrastructure and diverse offerings position it to capitalize on the AI boom. Deutsche Bank increased its price target to $335 from $240, while Jefferies raised theirs to $360 from $270. Bank of america boosted its target to $368, labeling Oracle a ”key AI enabler,” and Citi set a new Street high of $410.
Citi analysts now view Oracle as a “unique megacap AI winner,” highlighting “one of the strongest quarterly contract signings we’ve come across in all of software.” Investors are now looking ahead to Oracle’s upcoming AI event next month, where co-founder and CTO Larry Ellison is expected to unveil a new AI service.
