Oracle (ORCL, Financial) Expands AI Horizons with OpenAI Deal
- Oracle strengthens its AI presence by partnering with OpenAI in a major data center deal.
- Wall Street analysts foresee varied price targets for Oracle, indicating a mixed outlook.
- GuruFocus estimates suggest a significant downside in Oracle's stock valuation.
Oracle (ORCL, Financial) has strategically enhanced its footing in the AI sector by inking a pivotal agreement with OpenAI. The deal involves supplying 4.5 gigawatts of data center capacity for OpenAI's Stargate Project. This maneuver underscores the indispensable role that hyperscalers play in advancing AI infrastructure. The announcement has positively influenced Oracle's stock, with shares edging up by 1% following a new record high.
Wall Street Analysts Forecast
According to insights from 32 analysts, the average one-year price target for Oracle Corp (ORCL, Financial) is set at $218.48. The projections on the higher end reach $250.00, while the lower spectrum suggests $175.00. This average target indicates a potential downside of 7.59% from the recent trading price of $236.43. For comprehensive details, visit the Oracle Corp (ORCL) Forecast page.
Oracle's stock maintains an "Outperform" status based on the consensus recommendation from 41 brokerage firms, with an average rating of 2.1 on a scale where 1 represents a Strong Buy and 5 stands for Sell. This reflects a generally optimistic outlook among analysts regarding Oracle's market performance.
From a valuation perspective, GuruFocus' estimates set the GF Value for Oracle Corp (ORCL, Financial) at $152.05 over the next year. This suggests a considerable downside of 35.69% compared to its current market price of $236.43. The GF Value is derived from historical trading multiples, past growth, and forward-looking business performance estimates. Additional insights can be accessed on the Oracle Corp (ORCL) Summary page.
