oracle’s The bull market, which has grown as the company has become increasingly central to the artificial intelligence boom, came to a halt on Friday, with the stock down 7%, its worst day since January.
The slides were released a day after the software company unveiled its long-term AI-driven outlook at an analyst conference as part of the Oracle AI World conference in Las Vegas.
Oracle announced Thursday that it expects fiscal 2030 cloud infrastructure revenue to be $166 billion, up from $18 billion in fiscal 2026. The company currently expects adjusted earnings per share of $21 on total revenue of $225 billion in fiscal 2030, representing more than 31% annualized revenue growth.
Initial reactions were positive. Oracle shares rose 3.1% on Thursday, continuing a rally that has boosted the company’s market capitalization by more than 160% in two years.
But skepticism emerged Friday, with some analysts questioning Oracle’s ability to meet its lofty goals.
“We have a feeling that stocks may take some breather here as investors try to digest these numbers and gain some comfort about the long-term achievability of these numbers,” RBC Capital Markets analyst Rishi Jallia told CNBC’s Seema Modi in an email. Jallia recommends owning the stock.
Oracle did not respond to requests for comment.
Oracle has emerged as one of the biggest beneficiaries of the AI infrastructure boom. The company recently announced that it has signed a five-year contract worth more than $300 billion with OpenAI to provide access to its AI chips. After reporting its September results, the company said it had $455 billion in outstanding performance obligations, up 359% from a year earlier, and the stock had its best day since 1992.
Oracle confirmed on Thursday that it had signed a cloud contract with Meta, announcing it had signed a $65 billion cloud infrastructure contract this quarter. Oracle also said that adjusted gross margins for AI infrastructure will be between 30% and 40%, higher than some analysts expected.
UBS analyst Karl Keilstead raised his price target to $380 from $360 in a note on Friday, but said the stock price does not reflect the full upside of the company’s AI acceleration. The stock closed Friday at $291.31.
While recommending the stock to buy, Kiersted noted several points that “more cautious voices” would note in his “bear scenario.” These include the risks of concentrating business on OpenAI and the “various unanticipated go-live bottlenecks” that could come with such an aggressive ramp-up, he wrote.
Oracle’s tone remains extremely optimistic. Clay Magowyk, who was named one of Oracle’s two CEOs last month, said at the conference that this quarter’s efforts were “across seven different contracts from four different customers.”
“There’s no OpenAI among those customers,” Magwirke said. “I think sometimes people wonder, ‘Hey, is it just OpenAI?’ We actually think OpenAI is a great customer, but we have a lot of customers.”
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