Oracle has been able to get on this year to the wave of artificial intelligence or iawhat has promoted its actions more than 45% This year thanks to Large agreements in the cloud and the increase in the demand for AI. But Wall Street analysts wonder If this trend will allow you to make lasting profitsaccording to Francisco Velásquez in Yahoo Finance.
«Oracle has been increasing its income in an average digit, and now it could grow between 15% and 20% (annual) over the next few years,» he said Gil Luria, director of DA Davidsonto Yahoo Finance. «That is why their actions have had such a good performance.»
The company recently signed a cloud infrastructure agreements seriesincluding a contract for the rental of graphic chips (GPU) of high power, essential for the training and execution of AI models. A agreement of this type could add up to 30,000 million dollars to Oracle’s revenues for 2028.
His division of Cloud infrastructure (OCI) It has positioned itself as a low and high performance alternative to AWS, Azure y Google Cloud.
Hyperscalador is also part of the Stargate projectan initiative of 500,000 million dollars launched earlier this year together with SoftBank Group, OpenAI y Metagenomi To promote the development of AI in the US. On the other hand, Oracle has committed 3,000 million dollars To expand the AI infrastructure in Europe.
Oracle has received qualification improvements from analysts, including those of Scotiabankwhich recently began its coverage with a target price of $ 300citing its solid position in AI infrastructure. His analysts described the company, 48 years old, as «in transition to a new paradigm.»
But not all companies see Oracle expanding their wings: D.A. Davidson Maintain a qualification Neutral and a target price of 220 dollarsy Mizuho foresee a setback to around 180 dollars.
«The current price already reflects the bullish potential, unless a significant acceleration of earnings growth is achieved,» Luria said. «The action begins to be quite expensive.»
«He cloud businessin rapid growth, it requires a large capital investment and operates with smaller margins. On the other hand, the Traditional Software, Hardware and Maintenance Business Oracle is in decline. However, this segment represents the 60% of the company’s business and has a margin around 50%”according to Luria.
«The key is not only the growth of income, but if Oracle can turn it into profitable profits,» said Luria. «That will determine if the action can continue to rise.»
In his last quarterOracle reported 15.9 billion dollars in income11% more interannual, and a BENEFIT BY Action of $ 1.70compared to $ 1.67 from the previous year. The Cloud infrastructure sales They increased a 52% Interanual.
Analysts have raised their earnings estimates for Oracle, which reflects optimism about the growth of their AI and the cloud. He Prognosis of consensus of profits per action (BPA) For fiscal year 2025 It is from 6.72 dollarsan interannual increase, and 7,66 dollars For fiscal year 2026.
While some on Wall Street fear that Oracle’s impulse to AI will not translate into significant profits, others claim that its cloud infrastructure platform is the future.
«The history of Oracle AI is not just about software or language models, but about OCI, its cloud infrastructure platform that directly competes with Microsoft Azure and Amazon web services,» he said Paul Meeks, director de inversiones de Water Tower Researchin Market Catalysts.
On the other hand, the co -founder and technology director of Oracle, Larry Ellisonis now the second richest person in the world, surpassing the CEO de Meta, Mark Zuckerberg. His net assets is from 251 billion dollarsalmost 60 billion more in 2025, according to the Bloomberg billionaire index.
OracleIt lies downward on Friday afternoon at 246.90 dollars. 70 and 200 periods are maintained below the price, down the 74 points and the MACD lines above the zero level.
The medium and long term resistance is found in the 251.51 dollars. Meanwhile, EI indicators are mostly bullish.