Oracle Shares Rally as AI Bets Pay Off
Oracle stock has nearly doubled this year, driven by optimism around a $300 billion, five-year deal with OpenAI. While Q1 FY26 results disappointed with $14.9 billion in revenue and $1.47 EPS, upbeat forecasts of $18 billion in infrastructure revenue this year and $144 billion by 2030 kept momentum strong.

Safra Catz cited multibillion-dollar contracts and a swelling $455 billion backlog, up 359%. Clients now include OpenAI, Meta, and xAI, with Oracle pushing database-integrated inference services and AI agents.

Challenges include $35 billion in annual capex, intense rival competition, and uncertain enterprise AI adoption. MIT research suggests many businesses still struggle to monetize AI investments.

Analysts remain largely positive but cautious on valuation. TipRanks sets a consensus price target of $263.93, implying downside risk unless Oracle proves AI can drive long-term enterprise gains.