Oracle has seen a remarkable surge in its stock value, soaring 36% on Wednesday to reach an all-time high of approximately $328. This impressive jump comes on the heels of the tech giant’s announcement of a significant increase in its backlog of business, driven by soaring demand for AI infrastructure. Analysts from major financial institutions, including Deutsche Bank, Bank of America, Citi, and Jefferies, have responded enthusiastically by raising their price targets for Oracle, indicating strong confidence in the company’s position in the fast-evolving AI landscape.
The substantial uptick in Oracle’s stock price has nearly doubled its value since the beginning of the year, signaling robust investor sentiment regarding the company’s future prospects. Deutsche Bank analysts highlighted the “truly awesome results” reported by Oracle, describing them as a clear testament to the company’s leadership in AI infrastructure. The firm’s backlog now totals $455 billion, a staggering increase that has more than quadrupled since the same period last year.
Notably, Oracle attributed its stellar backlog to the signing of four multibillion-dollar contracts during its fiscal first quarter. CEO Safra Catz noted that the company anticipates securing additional large contracts in the coming months, which may further bolster its market standing.
In a separate development, the Wall Street Journal has reported that OpenAI, the company behind the popular ChatGPT, is poised to enter a partnership with Oracle. The agreement is reportedly valued at $300 billion over five years, beginning in 2027. However, neither Oracle nor OpenAI has confirmed the details of the potential partnership.
Deutsche Bank’s analysts emphasized that Oracle’s infrastructure strengths and diverse offerings could position the company advantageously in the competitive AI arena. Following Wednesday’s performance, Deutsche Bank raised its price target from $240 to $335, suggesting that the stock might soon exceed this new benchmark if it maintains its current momentum.
Other analysts have been equally optimistic, with Jefferies increasing its target from $270 to $360. Bank of America set a target of $368, tagging Oracle as a “key AI enabler.” Citi raised its target significantly to $410, marking it as the highest on Wall Street. Analysts from Citi lauded Oracle as a “unique megacap AI winner,” noting the exceptional quarterly contract signings that have positioned the company prominently within the software sector.
As the excitement builds, investors and market watchers are looking forward to Oracle’s upcoming AI event next month, where the company is expected to unveil a new AI service. Co-founder and CTO Larry Ellison has indicated that more announcements are on the horizon, adding further intrigue to Oracle’s future and its role in shaping the landscape of artificial intelligence.
