US stock futures steady with China trade talks, Q3 earnings in focus
Investing.com - Citizens has reiterated its Market Outperform rating on Oracle (NYSE:ORCL) with a price target of $342.00. The tech giant, currently valued at $892.3 billion, has demonstrated remarkable momentum with an 89.7% year-to-date return.
The firm cited Oracle’s position as the "go-to place" for AI workloads from major customers including OpenAI, xAI, Meta, Nvidia, and AMD. With reported RPO (remaining performance obligation) exceeding half a trillion dollars, Citizens believes Oracle is positioned to drive significant growth acceleration over the coming years. The company’s revenue has already grown 9.67% to $59.02 billion in the last twelve months. InvestingPro analysis reveals 17+ additional key insights about Oracle’s growth trajectory and market position.
Citizens highlighted that AI workloads extend beyond training, which benefits Oracle’s "flexible" and "extremely efficient data center designs" that provide more power at lower costs. The firm also noted that Oracle has 600 AI agents live across its portfolio with over 2,400 customers using those agents.
The research firm addressed Oracle’s rising capital expenditures, explaining that the company’s approach to data center construction helps manage upfront costs. Oracle does not pay for land, data center, and power until delivery, resulting in lower initial expenses and better time to value.
Citizens expressed confidence in Oracle’s leadership team, including Chairman and CTO Larry Ellison, who founded the company in 1977, Executive Vice Chair Safra Catz, and co-CEOs Clay Magouyrk and Mike Sicilia.
In other recent news, Oracle has been in the spotlight with several notable developments. The company reported a significant boost in its infrastructure-as-a-service business, securing $65 billion in total contract value from just seven deals during the second quarter. Oracle executives have also projected that their cloud infrastructure revenue could reach $166 billion by fiscal year 2030. In a related development, Barclays raised its price target for Oracle to $400, citing strong AI momentum, while maintaining an Overweight rating on the stock.
Additionally, Oracle’s CEO provided insights into the company’s artificial intelligence gross margins, which are expected to range between 30% and 40%, according to a Mizuho Securities research note. The company has also seen the adoption of its Fusion Cloud Applications by the Choctaw Nation of Oklahoma and the United States Department of the Air Force. These organizations are leveraging Oracle’s AI-powered applications to enhance operational efficiency and streamline business processes. These recent developments highlight Oracle’s continued expansion in cloud and AI infrastructure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.