Oracle (ORCL) Stock Hits an All-Time High Amid Increased Cloud Demand

Optimism surrounding Oracle’s ORCL cloud and AI infrastructure endeavors pushed its stock to an all-time high of $228 a share on Monday.  This comes as the enterprise cloud leader has secured lucrative contracts thanks to its momentum in AI, with many analysts starting to raise their price targets for Oracle stock. That said, let’s see if now is a good time to buy ORCL for higher highs. Massive Cloud Deal & AI Momentum Although the identity of the customer was not disclosed, Oracle stock spiked +4% on Monday following news of a regulatory filing in which the company had signed a massive $30 billion annual cloud services deal. Given the scale and nature of the contract, many analysts believe the client could be a major AI player like OpenAI.To that point, Oracle and OpenAI have formed a strategic partnership, collaborating on a massive AI training hub in Texas. As part of a broader $500 billion AI infrastructure initiative, which also includes Nvidia NVDA, Oracle is the venture’s core infrastructure provider. Deemed Project Stargate, Oracle will be helping to expand OpenAI’s compute capacity beyond Microsoft MSFT Azure. Embarking on a multi-cloud strategy, Microsoft and OpenAI are using Oracle Cloud Infrastructure (OCI) to integrate Azure’s AI cloud platform to produce enhanced training for large-language models (LLMs).With demand booming for OCI, Oracle’s MultiCloud revenue is reportedly growing at over 100% in correlation with the need to support generative AI workloads such as OpenAI’s ChatGPT. Reporting its fiscal fourth-quarter results earlier in the month, Oracle's Q4 sales stretched 11% year over year to $15.9 billion, pinpointing that its MultiCloud database revenue spiked 115% sequentially, driven by partnerships with Amazon's AMZN AWS and Alphabet’s GOOGL Google Cloud, along with Microsoft Azure. ORCL Performance & Valuation Comparison Following today’s rally, ORCL is up +30% in 2025. More impressive, Oracle stock is now sitting on +200% gains in the last three years to vastly outperform the broader indexes and its Zacks Computer-Software Market’s +95%, which includes Microsoft stock at +90%.Image Source: Zacks Investment ResearchFurthermore, despite Oracle’s blazing stock performance, at 31.3X forward earnings, ORCL still trades beneath Microsoft’s 37.1X and their Zacks Computer-Software Industry average of 35.9X.Image Source: Zacks Investment Research Analysts Upgrade ORCL Price Target to $250 Citing strong cloud momentum, AI infrastructure growth, and a bullish outlook for Oracle’s current fiscal year 2026, several financial firms have upped their price target for ORCL shares to $250, including analysts at Stifel, UBS, and Guggenheim. Bottom Line At the moment, Oracle stock currently lands a Zacks Rank #3 (Hold). However, it wouldn’t be surprising if a buy rating is on the way and perhaps higher highs for ORCL, as earnings estimates for Oracle are likely to rise in correlation with the announcement of its lucrative cloud services deal.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oracle Corporation (ORCL): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks