🕒 Created · Updated

Oracle stock rises as Morgan Stanley raises price target for the company's AI cloud infrastructure

Oracle stock rose 5% to $167.15 in early trading on Tuesday, following a price target raise by Morgan Stanley. The move reignited enthusiasm for AI cloud infrastructure, lifting shares of CoreWeave, which rose 3% to $92.20. Oracle's recent performance includes a 93% year-over-year increase in Cloud Infrastructure revenue to $5.79 billion. The company's Remaining Performance Obligations (RPO) surged 363% to $638 billion, which includes $75 billion tied to prepaid or customer-supplied GPU AI contracts. Oracle management confirmed a $90 billion revenue target for FY2027 and raised non-GAAP EPS guidance to $8.05. The company is scheduled to report its Q1 FY2027 earnings this Thursday after the bell. Investors are watching the report for confirmation of the RPO trajectory and cloud growth trends. Market expectations for this quarter's revenue growth are 27.9% year-over-year, an improvement from the 12.2% increase recorded in the same quarter last year.

Sources

Paywall and unreadable sources