Oracle Corporation's (ORCL, Financial) stock surged over 5%, reaching a 52-week high of $210.68, following its fourth-quarter earnings and revenue surpassing market expectations. The company's growth is primarily driven by its cloud computing business, bolstered by its multi-cloud partnership strategy and AI infrastructure expansion. Key cloud clients include Amazon, Alphabet's Google, and Microsoft's Azure.
Wall Street analysts have adjusted their price targets in response. Piper Sandler analyst Brent Bracelin increased the target from $130 to $190, maintaining a "hold" rating due to concerns about capital intensity. BNP Paribas Exane analyst Stefan Slowinski raised the target to $226, projecting Oracle's cloud infrastructure division to achieve $25 billion in annualized revenue by fiscal year 2026. Keybanc analyst Jackson Ader also lifted the target to $225, highlighting the company's growing order backlog and ambitious goals.
Oracle is a participant in the U.S. government's $500 billion Stargate AI project, further expanding its momentum as demand for AI computing rises.
