July 3 - Oracle stock surged more than 5% on Wednesday after the software giant revealed that OpenAI will lease roughly 4.5 gigawatts of U.S. data‑center power under its Stargate infrastructure project.
Under the agreement, OpenAI is set to tap Oracle's cloud services deal projected to bring in over US$30 billion in annual revenue starting in 2028. The commitment underscores OpenAI's strategy to diversify its cloud providers as demand for its AI offerings grows.
As part of the expansion, Oracle plans new data‑center builds in states including Texas, Michigan and Georgia, and will boost capacity at its Abilene, Texas, site. Stargate, initially launched earlier this year, aims to cement U.S. leadership in high‑performance AI research by scaling national infrastructure.
Investors have responded to the news as a major competitive win for Oracle in the cloud and AI arena. Observers will be watching how the partnership shapes Oracle's infrastructure footprint and revenue trajectory in the coming years.
Is ORCL a Buy Now?
Based on the one year price targets offered by 32 analysts, the average target price for Oracle Corp is $218.48 with a high estimate of $250.00 and a low estimate of $175.00. The average target implies a downside of -5.00% from the current price of $229.98.
Based on GuruFocus estimates, the estimated GF Value for Oracle Corp in one year is $152.01, suggesting a downside of -33.90% from the current price of $229.98. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.
