Oracle ( (ORCL) ) has risen by 8.55%. Read on to learn why.
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Oracle’s stock has experienced a significant rise of 8.55% over the past week, driven by a series of positive developments and analyst upgrades. The surge was largely fueled by Oracle’s strategic deal with OpenAI, which involves leasing 4.5 gigawatts of data center power as part of the Stargate project. This agreement is projected to generate over $30 billion in annual revenue by 2028, positioning Oracle as a formidable player in the competitive cloud and AI sectors.
The optimism surrounding Oracle’s future prospects was further bolstered by analyst upgrades. Notably, TD Cowen analyst Derrick Wood raised his price target for Oracle to $275, citing the potential revenue boost from the OpenAI deal. Additionally, Stifel analyst Brad Reback upgraded Oracle to a Buy, highlighting the company’s momentum in its cloud business and the expected acceleration in revenue growth. These endorsements reflect a growing confidence in Oracle’s strategic direction and its ability to capitalize on emerging market opportunities.
Despite the recent stock price surge, Oracle maintains a Moderate Buy consensus rating among analysts. While some caution remains due to potential downside risks, the overall sentiment is positive, with expectations of sustained growth in Oracle’s cloud and AI initiatives. As Oracle continues to expand its data center capacity and strengthen its position in the tech industry, investors are increasingly optimistic about its long-term growth potential.