Wall Street Turns Bullish on Oracle’s AI Ambitions

Oracle Corporation is once again capturing Wall Street’s attention. Investment bank Jefferies has boosted its price target on the stock from $360 to $400, maintaining a positive outlook on the company’s rapid advance in cloud and artificial intelligence infrastructure.

Jefferies analysts described Oracle as entering a new phase of accelerated growth, supported by a surge in demand for high-performance computing and AI training capacity. The firm’s report highlighted that Oracle’s recent performance, including robust backlog growth and strategic data-center partnerships, positions it to compete more directly with established hyperscalers such as Amazon Web Services, Microsoft Azure, and Google Cloud.

Cloud and AI Drive Long-Term Growth Forecast

Jefferies’ projections outline an aggressive growth trajectory for Oracle through the end of the decade. The bank forecasts total revenue climbing to $225 billion by fiscal year 2030—nearly four times its current annual run rate. Oracle Cloud Infrastructure (OCI), the company’s key growth engine, is expected to reach $166 billion in sales during the same period, implying a 75% compound annual growth rate.

Earnings per share could also rise sharply, with Jefferies estimating a 28% annual growth rate, reaching $21 per share by 2030. Analysts point to Oracle’s focus on AI infrastructure partnerships—particularly with Nvidia and Cohere—as a critical catalyst behind these projections.

Integrated Strategy Strengthens Competitive Position

A cornerstone of Oracle’s expansion strategy is its “One-Oracle” model—an integrated approach that unifies databases, applications, cloud services, and AI under a single platform. This structure enables customers to migrate workloads more efficiently and capitalize on Oracle’s software expertise while leveraging its growing cloud capacity.

According to Jefferies, this vertical integration provides Oracle with a strategic edge. By combining infrastructure and software, Oracle can offer a more complete enterprise solution, reducing client dependence on multiple providers and improving retention rates.

Investment and Margin Dynamics

Despite its bullish stance, Jefferies cautions that Oracle’s near-term profitability could come under pressure as the company ramps up capital expenditures to expand AI-ready data centers globally. Such investment is vital to meet the demand surge but may weigh on operating margins in upcoming quarters.

Still, analysts believe these costs represent strategic reinvestment rather than structural weakness, setting the stage for scalable, high-margin returns over time.

Outlook: Sustained Momentum Ahead

Oracle’s transformation from a legacy software vendor into a next-generation AI and cloud leader is gaining credibility on Wall Street. As the company continues to scale its infrastructure footprint and secure major AI partnerships, investor confidence appears to be rising in tandem.

Key factors to monitor include Oracle’s execution on large AI infrastructure deals, progress in converting backlog into recurring revenue, and margin stability amid heavy investment cycles.

Jefferies’ latest upgrade underscores a growing consensus: Oracle is no longer just catching up in the cloud race—it is actively shaping the next phase of enterprise computing.