Oracle Rides AI Cloud Boom to Record Highs
Oracle stock has soared in 2025, nearly doubling as investors bet on its $300 billion, five-year OpenAI deal. Q1 FY26 results missed expectations with $14.9 billion revenue and $1.47 EPS, but forecasts of $18 billion in cloud revenue this year and $144 billion by 2030 drove enthusiasm.

Safra Catz highlighted Oracle’s surging RPO backlog of $455 billion, up more than threefold, fueled by big-ticket contracts. New customers include OpenAI, Meta, and xAI. Oracle is carving out a niche with AI inference tied to its database products and new AI agent initiatives.

Challenges persist, including $35 billion in capex, stiff competition, and macroeconomic risks. MIT research suggests many enterprises still fail to monetize AI, leaving open the question of whether the boom can last.

Analysts largely remain bullish, calling the shift “seismic,” but TipRanks shows an average target of $263.93, suggesting current valuations are stretched.