Oracle's AI Transformation Seen as Catalyst for Massive Price Gains

JPMorgan has reasserted its bullish stance on Oracle Corp (NASDAQ:ORCL), assigning a $200 price target, indicating over 30% upside from its August 12 closing price of $153.28.

The brokerage believes that Oracle is undergoing a significant transformation into an AI infrastructure company, which could eventually command a higher valuation multiple than traditional enterprise software companies.

JPMorgan expects Oracle's cloud ambitions to expand tenfold by fiscal 2030, reaching $180 billion in revenue for its Cloud Infrastructure (OCI) and infrastructure-as-a-service (IaaS).

The brokerage cites an unusually strong pipeline of agreements with customers such as OpenAI and Meta Platforms, Inc., which have contributed to Oracle's remaining performance obligations (RPO) totaling $638 billion.