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Investing.com - Stifel has reiterated its Buy rating on Oracle (NYSE:ORCL) stock with a price target of $350.00, following the company’s analyst meeting at its AI World user-conference. The software giant, currently valued at $892.3 billion, has seen its stock surge 89.7% year-to-date, according to InvestingPro data.
During the meeting, Oracle management raised its fiscal year 2030 OCI (Oracle Cloud Infrastructure) revenue target to $166 billion, an increase of $22 billion from previous forecasts, and discussed expected AI OCI gross margins of 30-40%, which exceeded market expectations of approximately 30%. This ambitious target represents significant growth from the company’s current annual revenue of $59.02 billion, with recent revenue growth tracking at 9.67%.
The company revealed that its remaining performance obligations (RPO) now exceed $500 billion, up from $455 billion reported last quarter, indicating customer demand is significantly outpacing supply capacity.
Oracle also outlined new comprehensive targets for 2030, projecting $225 billion in revenue and earnings of $21 per share, while emphasizing its continued focus on aggressive operating expense management.
Despite these positive developments, Oracle shares declined in after-hours trading as the company’s fiscal year 2026 and 2027 earnings per share targets of $8 and $10.65, respectively, came in slightly below market expectations due to up-front scaling costs associated with the OCI infrastructure expansion.
In other recent news, Oracle has made significant announcements regarding its financial projections and strategic initiatives. Wolfe Research reiterated its Outperform rating for Oracle, highlighting a substantial upward revision in Oracle Cloud Infrastructure (OCI) revenue projections, expecting a 75% compound annual growth rate (CAGR) from fiscal years 2026 to 2030. This includes an ambitious earnings per share (EPS) target of $21 by fiscal year 2030. Similarly, Evercore ISI raised its price target for Oracle to $385, maintaining an Outperform rating, following the company’s AI World conference. Oracle’s updated long-term guidance includes a fiscal year 2030 revenue target of $225 billion, representing a 31% CAGR.
Barclays also increased its price target for Oracle to $400, citing strong momentum in its infrastructure-as-a-service business. This was evidenced by $65 billion in total contract value signed in just the second quarter from seven deals with four customers. Citizens reiterated its Market Outperform rating, emphasizing Oracle’s strategic position as a key player for AI workloads from major clients like OpenAI and Meta. Additionally, Mizuho Securities provided clarity on Oracle’s AI margins, noting that Oracle Cloud Infrastructure AI gross margins are expected to range between 30% and 40%. These developments reflect Oracle’s robust positioning and growth potential in the evolving technology landscape.
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