Shares of Oracle Corporation (ORCL) gained nearly 2% in pre-market trading after the company announced a $3 billion investment to expand its AI and cloud infrastructure across Germany and the Netherlands. The multi-year commitment highlights Oracle’s push to strengthen its footprint in Europe’s fast-growing cloud and AI markets. Year-to-date, ORCL stock has gained around 38%.
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More Details About the Investment
As part of its broader European AI and cloud investment strategy, Oracle will allocate $2 billion to Germany and $1 billion to the Netherlands.
According to a report by Het Financieele Dagblad, the Dutch portion of the investment will be used to expand Oracle’s AI and cloud services through its Amsterdam data center, aiming to meet rising local demand. While the company has outlined a five-year timeline for the project, it has not specified whether the Amsterdam expansion will lead to new job creation.
Meanwhile, the investment puts Oracle in line with other U.S. tech giants like Amazon (AMZN) and Google (GOOGL), which are also expanding across Europe as they compete for a larger share of the region’s growing cloud and AI market.
Oracle Bets Big on Cloud and AI Expansion
In June, Oracle released its FY25 earnings report, highlighting strong performance fueled by rapid growth in its cloud business.
Looking ahead, the company raised its annual revenue forecast, fueled by strong demand for its AI-focused cloud services. It now expects total cloud revenue, including applications and infrastructure, to accelerate from 24% in FY25 to over 40% in FY26. Additionally, triple-digit growth in MultiCloud revenue is expected to continue through FY26, supported by robust customer demand and expanding global adoption.
Is Oracle Stock a Good Buy Now?
Last week, ORCL stock received price target hikes from several Wall Street analysts. However, the recent surge in the stock price implies a limited upside ahead. Over the last six months, ORCL stock has gained almost 45%.
Overall, Wall Street has a Moderate Buy consensus rating on ORCL stock, based on 22 Buys and 10 Holds assigned in the last three months. The average Oracle stock price target of $227.6 implies about a 0.74% downside from current levels.
