Oracle’s AI Cloud Ambition Gets a Wall Street Increase from Goldman Sachs

Goldman sees Oracle tripling its cloud revenue share as AI demand accelerates and infrastructure scales.

Oracle Corporation has been covered by Goldman Sachs, which has given the cloud and enterprise software provider a "Buy" rating with a 240 dollar price target. Analyst Gabriela Borges claims that Oracle's competitive position in AI compute workloads is one of the key factors contributing to the positive outlook.

Analyst pointed out that the business has the ability to increase its share of cloud revenue from less than 10% to an estimated 25% over the next three years. The company also emphasized Oracle's technological advantages and projected that as cloud infrastructure deployment increases, gross profit will grow.

Investor concerns about Oracle's important investments in capital, especially in relation to its data center buildouts, were highlighted in Goldman Sachs' analysis. However, as more phases of the 1.2 GW Abilene data center come online over the next 12 months, the company expects more visibility into profit performance.

The analysts also discussed Oracle's balance sheet strategy, speculating that the company is nearing the peak of its debt increases and that, in accordance with corporate guidance; it should finish its current data center expansion with less than eighty billion dollars in debt.

Goldman Sachs estimated a broad range of possible earnings per share through 2030 in a scenario analysis evaluating bear, base, and bull outcomes, highlighting both downside risks and upside potential in Oracle's long-term trajectory.

Wall Street continues to pay attention to Oracle, a recognized supplier of cloud services, enterprise apps, and database management systems, in the midst of larger discussions about how legacy software companies should shift toward Artificial intelligence-based expansion.