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Investing.com - Oppenheimer maintained its Perform rating on Oracle (NYSE:ORCL), now a $892 billion market cap company, following the company’s recent investor meeting, citing positive business momentum but valuation concerns. According to InvestingPro data, Oracle is currently trading at elevated multiples, with a P/E ratio of 72.5x.
The investor meeting delivered several positive updates, including revisions to remaining performance obligations (RPO), Oracle Cloud Infrastructure (OCI), and medium-term financial outlook, along with strong commentary on Oracle’s opportunity in the artificial intelligence era.
Oracle management introduced long-term earnings per share targets and provided enhanced transparency on gross margins for OCI and AI consumption businesses, revealing effective margins of 30% to 40% for the latter.
The disclosure of multiple major AI deals in the current quarter, including with Meta, helped address customer concentration concerns that had previously been raised about Oracle’s business.
Oppenheimer expressed increased confidence in Oracle’s potential to become one of the fastest growing large-cap technology companies in both top and bottom-line metrics, noting its Perform rating was based solely on valuation despite acknowledging the business is experiencing a "major uptrend."
In other recent news, Oracle has seen several analysts adjust their outlooks following the company’s impressive fiscal projections and strategic moves in AI and cloud infrastructure. Oracle announced ambitious fiscal year 2030 targets, projecting $225 billion in revenue and $21 earnings per share, surpassing current consensus estimates. UBS raised its price target for Oracle to $380, while Jefferies and Mizuho both increased their targets to $400, citing Oracle’s new growth phase driven by AI infrastructure opportunities. Stifel maintained its Buy rating with a $350 price target, highlighting Oracle’s increased fiscal year 2030 Oracle Cloud Infrastructure (OCI) revenue target to $166 billion and improved AI OCI gross margins. Wolfe Research reiterated its Outperform rating with a $400 target, noting Oracle’s substantial upward revision in its top-line forecast and a 28% EPS CAGR projection for FY25-FY30. These updates reflect Oracle’s strong positioning in the tech sector as it capitalizes on emerging AI and cloud trends.
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