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Stifel Cuts Oracle (ORCL) Price Target After Earnings, Maintains Buy Rating

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks Analysts Are Watching Closely.  On December 11, Stifel analyst Brad Reback lowered the price target on the stock to $275.00 (from $350.00) while maintaining a “Buy” rating. The price target cut follows Oracle’s Q2 earnings report.

The AI bellwether reported lower quarterly revenue than expected despite booming demand for its artificial intelligence infrastructure.

Oracle reported earnings per share of $2.26, beating expectations of $1.64. Meanwhile, revenue came in at $16.06 billion, slightly below the anticipated $16.21 billion.

Looking ahead, the company called for $1.70 to $1.74 in adjusted earnings per share and 19% to 21% revenue growth for the fiscal third quarter. Analysts polled by LSEG included $1.72 in earnings per share and $16.87 billion in revenue, implying 19% growth.

Stifel noted a “lackluster print” for Oracle, with modest improvement in RPO growth of 15% quarter-over-quarter overshadowed by considerably higher than anticipated capital expenditure plans.

Meanwhile, the increase in fiscal year 2026 capital expenditure guidance by $15 billion to a total of $50 billion has raised concerns about how the company is going to fund its data center expansion.

According to the management, the company remains committed to maintaining an investment-grade credit rating and highlighted that it has various funding options.

Infrastructure as a Service (IaaS) revenue of an estimated $4.1 billion met expectations but didn’t exceed it, noted Stifel. Meanwhile, EPS, excluding the Ampere benefit, appeared to be 10-15 cents below guidance.

Despite near-term concerns, the firm believes that current capital investments are likely to support accelerating Oracle Cloud Infrastructure (OCI) growth in coming quarters. This will be supported by the company’s expanding and increasingly diverse IaaS customer base, leading to potentially improved EPS growth rates in fiscal year 2027.

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: 12 Hot AI Stocks on Wall Street’s Radar and 12 Must-Watch AI Stocks on Wall Street

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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