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Oracle’s (ORCL) Cloud Business Set to Grow 14x by 2030, UBS Says

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks In The Spotlight For InvestorsOn September 10, UBS analyst Karl Keirstead raised the price target on the stock to $360.00 (from $280.00) while maintaining a Buy rating.

The rating affirmation follows Oracle’s disclosure of $317 billion in incremental backlog, supporting the growth forecast for its cloud infrastructure segment to expand from $10 billion in fiscal year 2025 to $144 billion in fiscal year 2030.

While the company hasn’t disclosed its customers, the firm believes that the largest boost comes from OpenAI. On the same day, The Wall Street Journal reported that indeed, OpenAI has signed a contract to purchase $300 billion in computing power over the course of five years from Oracle.

“The key take from the quarter is really the $317b of incremental backlog, that drives the growth guide for Oracle’s cloud infra segment – 14x over the next 5 years from $10b in FY25 to $144b in FY30. Oracle didn’t disclose customers but we’re assuming that the largest boost is from OpenAI ($100b+), alongside xAI and Meta. This diversity (not just OpenAI, training AND inference) lowers the stock’s risk profile, although concentration with OpenAI will still be high.”

“The guide for FY26 operating income growth of mid-teens (we modeled 8%) was another positive and speaks to tight opex/headcount control. While our FY28+ revs estimates are moving up sharply, we’re assuming some portion of the cloud infra growth comes via database migrations and hence on-prem database support revs could go ex-growth. Net, for FY29, we’re raising our revs estimate from $134b to $163b, our OM estimate from 38% to 37% and our non-GAAP EPS estimate from $12.51 to $13.98.”

Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.

While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:10 Buzzing AI Stocks on Wall Street and 10 AI Stocks on Wall Street’s Radar.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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