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Oracle CEO Safra Catz said AI demand leaves significant upside to the company’s 2026 revenue target.
Justin Sullivan/Getty Images
Oracle
stock looked set to climb to fresh record highs Tuesday, while C3.ai,
Palantir Technologies
,
and other AI-focused stocks also were given a boost after the enterprise software company reported strong earnings.
Shares in
Oracle
(ticker: ORCL) closed at an all-time high ahead of the company’s earnings Monday and spiked again in premarket trading after Oracle beat earnings expectations in the fiscal fourth quarter. The stock was up more than 5% in premarket trading.
Management also extolled the impact of AI demand on its cloud business, something investors were hoping to hear. Oracle stuck to its forecast of $65 billion in sales by 2026, but CEO Safra Catz said “AI demand leaves us significant upside.”
The upbeat earnings and outlook appeared to give AI-exposed stocks another lift ahead of the open of trading Tuesday.
Palantir
(PLTR) stock climbed close to 3%, and chip makers
Advanced Micro Devices
(AMD) and
Micron Technology
(MU) also gained around 2%.
C3.ai
(AI) rose 0.5% and
Nvidia
(NVDA) climbed 0.7%, while Oracle’s rival
Adobe
(ADBE) was up around 2%.
Oracle and Nvidia announced a multiyear partnership to help businesses using AI in October last year, and worked together on Nvidia’s AI supercomputing service DGX Cloud, launched in March.
D.A. Davidson analyst Gil Luria said Oracle’s cloud business results were “solid,” reiterating a Neutral rating on the stock with a price target of $115.
“While management focused on Oracle’s role in helping enterprises train their own LLMs (language learning models), the overall conversation was focused on underlying drivers of Oracle’s cloud growth,” Luria said. “Importantly, management reiterated its commitment to previously laid out FY2026 targets,” he added.
Mizuho Securities analysts raised their price target on the stock to $150 from $116 and said investors “continue to underestimate Oracle’s potential” to generate solid top-line and cash flow growth.
“Strong fourth-quarter results with upside potential from solid AI momentum (from Nvidia partnership and investment in OpenAI competitor Cohere) should improve investor sentiment and drive upside to fiscal-year 2026 estimates,” they said, reiterating a Buy rating.
Oracle posted revenue of $13.8 billion in the fiscal fourth quarter, ahead of analysts’ estimates of $13.7 billion, according to FactSet. Adjusted earnings of $1.67 a share also beat expectations of $1.58.
Write to Callum Keown at [email protected]
Source: https://www.barrons.com/articles/nvidia-amd-c3ai-palantir-oracle-ai-stock-price-6fc173f5?siteid=yhoof2&yptr=yahoo