Oracle Stock Jumps on 'Buy' Rating, $350 Price Target
Phillip Securities initiates coverage, citing Oracle's strong position in AI and cloud infrastructure as key growth drivers.
Oracle Corp. (ORCL) shares saw a significant uptick in early trading after Phillip Securities initiated coverage with a bullish 'buy' rating and an ambitious $350 price target. The move signals growing confidence in Oracle's strategic positioning as a major player in the artificial intelligence and cloud computing sectors.
The investment firm's positive outlook is underpinned by what it describes as Oracle's unique standing as a “niche Infrastructure as a Service (IaaS) and full-stack AI provider.” This specialization, according to the analyst note, allows Oracle to carve out a significant share of the burgeoning AI market. Oracle's robust backlog of remaining performance obligations (RPO), a key metric indicating future revenue.
Driving this optimism is Oracle's impressive 359% increase in its RPO backlog in the first quarter of fiscal year 2026, reaching a staggering $455 billion. This backlog, which is nearly eight times Oracle's fiscal year 2025 revenue, is fueled by a series of high-profile multi-cloud partnerships and substantial deals for AI training and inference. The company's strategic initiatives, including the ambitious 'Project Stargate,' are also contributing to this rapid growth.
Oracle's Cloud Infrastructure (OCI) is on a trajectory to reach an estimated $144 billion by fiscal year 2030, which would represent a compound annual growth rate of 68% over four years. that as Oracle continues to scale its capacity, it is well-positioned to convert its substantial backlog into accelerated profit growth.
Further bolstering Oracle's position are its flexible OCI deployments and strong compliance capabilities, which have gained significant traction in regulated industries. Moreover, Oracle's strategic partnerships with other major cloud providers and leading chipmakers are seen as a critical advantage, supporting its AI training, inference, and database integration services. to further solidify Oracle's role as a important player in the AI ecosystem.