Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com -- Mizuho said in a note Friday that it believes a well-known software name is “emerging as a structural AI winner” and could be on track to join the trillion-dollar market cap club, citing surging demand for its AI infrastructure and database technology.
“At the cusp of the enterprise AI revolution, we have increased confidence that Oracle is emerging as a structural AI winner,” Mizuho wrote, pointing to the company’s “differentiated architecture” in Oracle Cloud Infrastructure (OCI) and “surging demand for AI training workloads” as driving “a clear inflection in growth.”
The firm lifted its price target to $300 from $245 and reiterated its Outperform rating, noting that Oracle’s end-to-end AI stack, spanning applications, mission-critical databases, and AI training infrastructure, positions it to capture “a disproportionate share of AI-driven enterprise spend over time,” with revenue expected to grow at a roughly 27% compound annual rate through fiscal 2030.
Near term, Mizuho said OCI’s bare-metal GPU clusters and networking technology are enabling “50% faster training and up to 80% lower cost than hyperscalers,” fueling $138 billion in remaining performance obligations, up 41% year-on-year.
GPU capacity is projected to rise from 65,000 in fiscal 2024 to more than 365,000 by fiscal 2026.
Mizuho raised its fiscal 2028 revenue forecast to $124 billion from $95 billion and operating income to $47 billion from $40 billion, adding that Oracle’s database leadership, AI-driven application features, and deep vertical capabilities “create stickiness and monetization levers not reflected in current estimates.”
Despite a 48% year-to-date gain, Mizuho said Oracle trades at a “significant discount to infrastructure comps” and is “very well positioned to benefit from AI over both near-term and long-term.”