Wall Street Divided As Oracle's $225 Billion Growth Vision Sparks Optimism — And Concern

Oracle Corporation (NYSE:ORCL) has set aggressive long-term growth targets as it ramps up its cloud and artificial intelligence infrastructure ambitions, signaling confidence.The company's latest analyst day revealed strong bookings, rising revenue projections, and expanding demand for AI — underscoring Oracle's growing role in powering next-generation enterprise computing.However, the stock traded lower on Friday.Also Read: Oracle Deepens Microsoft Partnership, Unveils AI Agent Studio And MarketplacePiper Sandler analyst Hannah Rudoff maintained an Overweight rating on Oracle and raised the price forecast from $330 to $380.JP Morgan analyst Mark R Murphy reiterated a Neutral rating on Oracle with a price forecast of $270.Piper Sandler: Rudoff expressed optimism about Oracle following its analyst day, where the company raised its long-term revenue and cloud infrastructure targets. Oracle now projects $225 billion in revenue by fiscal 2030, implying a 31% five-year CAGR, with Oracle Cloud Infrastructure (OCI) likely to reach $166 billion in revenue, up from the prior $144 billion estimate, the analyst noted.She said the outlook underscores strong OCI momentum, aided by a 75% five-year CAGR, and an EPS target of $21 for fiscal 2030 that highlights disciplined cost control. Rudoff cited improved visibility into OCI gross margins, with co-CEO Clay Magouyrk clarifying that typical AI infrastructure deals carry 30–40% margins that expand over time. Bookings strength also stood out, with roughly $65 billion in IaaS total contract value secured in a single month and remaining performance obligations (RPO) surpassing $500 billion, the analyst noted.Rudolph said the updated guidance reinforces Oracle's expanding role in AI-driven infrastructure, databases, and applications, while acknowledging the elevated costs associated with its rapid data center build-out. She projected second-quarter 2026 revenue of $16.1 million and EPS of $1.64.JP Morgan: Murphy maintained an impartial stance on Oracle after the analyst day in Las Vegas, which ran alongside Oracle AI World. The analyst highlighted Oracle's accelerating progress in OCI, Fusion applications, and multi-cloud strategy.He noted that Oracle secured $65 billion in new OCI business in the fiscal second-quarter — excluding OpenAI — across four customers, including Meta Platforms Inc (NASDAQ:META), showing that AI infrastructure demand is expanding across multiple sectors. Murphy also flagged Oracle's RPO surpassing $500 billion and its ambitious fiscal 2030 revenue target and pro forma EPS.Oracle's growth remains constrained more by supply than demand, given challenges in securing data center capacity and power, as per the analyst. He noted that the ramp-up in OCI will require heavy capital expenditure, which could weigh on free cash flow despite the long-term upside.Murphy projected second-quarter 2026 revenue of $16.3 million and EPS of $1.61.ORCL Price Action: Oracle shares were down 7.99% at $288.25 at the time of publication on Friday. Nvidia, Marvell, Broadcom Bounce Back After ASML Earnings Boost Investor Confidence Photo: Shutterstock