Oracle stock price target raised to $350 from $300 at Mizuho on AI growth

Investing.com - Mizuho has raised its price target on Oracle (NYSE:ORCL) to $350 from $300 while maintaining an Outperform rating, citing explosive AI-driven growth. The stock, currently trading at $241.51 with a market cap of $678 billion, has delivered an impressive 63% return over the past six months. According to InvestingPro analysis, Oracle appears to be trading above its Fair Value, with analyst targets ranging from $183 to $400.

The firm highlighted Oracle’s mixed fiscal first quarter results but emphasized the company’s remarkable 359% year-over-year growth in remaining performance obligations (RPO), which reached $455 billion, positioning Oracle as a key AI infrastructure provider.

Mizuho noted strong demand from major customers including OpenAI, Meta, xAI, and Nvidia is driving Oracle Cloud Infrastructure (OCI) growth, prompting management to increase fiscal year 2026 capital expenditure to $35 billion.

Oracle’s management outlined approximately 69% OCI/IaaS five-year compound annual growth rate (CAGR), exceeding Mizuho’s recently raised estimates and significantly outpacing the Street’s projection of roughly 52% four-year CAGR.

Mizuho views Oracle’s unique full-stack position and redesigned database as enabling enterprises to securely blend proprietary data with leading large language models (LLMs), with Oracle AI World in October expected to be the next catalyst where more details and long-term targets might be revealed.

In other recent news, Oracle has reported significant developments in its financial and business operations. Oracle’s remaining performance obligations (RPO) have surged to $455 billion, with a notable 359% year-over-year growth, driven by major contracts including the Stargate project. The company has projected Oracle Cloud Infrastructure (OCI) revenue to reach $144 billion by fiscal year 2029, with a compound annual growth rate of 68% from FY26 to FY30. Wolfe Research raised Oracle’s stock price target to $400, maintaining an Outperform rating due to the company’s growth in cloud infrastructure fueled by AI demand.

Additionally, DA Davidson adjusted its price target to $300, noting Oracle’s fiscal first quarter 2026 earnings as largely in line with expectations. Evercore ISI increased its target to $340, highlighting Oracle’s accelerating OCI backlog as a key takeaway. Stifel raised its price target to $350, emphasizing Oracle’s RPO growth from contracts with large language model vendors. Jefferies also increased its target to $360, citing the substantial rise in Oracle’s RPO, which surpassed other hyperscalers. These updates reflect Oracle’s expanding business landscape and continued investor interest.

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