Oracle (ORCL) Is Up 5.4% After AI Suite Launch and Chip Partnerships at AI World Conference

• Oracle unveiled extensive new AI-powered product suites, infrastructure partnerships, and client wins at its AI World conference, including major agreements with AMD and Nvidia for next-generation chips and the launch of advanced enterprise AI capabilities across cloud, database, and applications.
• A unique aspect of these announcements is Oracle's move to embed AI agents and in-database intelligence into its core platforms, signaling an effort to differentiate through integrated, enterprise-ready AI solutions and multi-cloud flexibility.
• We’ll examine how Oracle’s comprehensive launch of AI-native products and infrastructure partnerships impacts its investment narrative and future growth outlook.

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Oracle Investment Narrative Recap

To own shares of Oracle today, an investor needs to believe that surging demand for AI-powered cloud infrastructure will continue to drive exceptional top-line growth, offsetting concerns about the company’s heavy capital expenditure and reliance on a handful of marquee customers. While Oracle’s massive new partnership with AMD to deploy 50,000 advanced GPUs underscores its commitment to scaling for future AI workloads, this news does not materially reduce the pivotal short-term risk around the company’s ability to profitably utilize its newly built data center capacity given ongoing CapEx pressures.

Among the recent announcements, the launch of the Oracle Cloud Infrastructure (OCI) A4 compute shapes stands out as particularly relevant. Optimized for AI inference and built on AmpereOne M processors, these new compute instances further Oracle’s push to differentiate in enterprise AI, but their eventual impact depends on sustained customer adoption, especially as competition from hyperscale rivals intensifies around similar offerings.

But as Oracle’s growth ambitions accelerate, investors should be aware of ...

Read the full narrative on Oracle (it's free!)

Oracle’s current analysis projects $99.5 billion in revenue and $25.3 billion in earnings by 2028. Achieving these targets implies 20.1% annual revenue growth and a $12.9 billion increase in earnings from the current level of $12.4 billion.

Uncover how Oracle's forecasts yield a $333.49 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Twenty-six fair value estimates from the Simply Wall St Community range from US$161.98 to US$333.93 per share. These views span well below to above current prices, while Oracle’s reliance on massive AI infrastructure demand remains a key factor shaping future performance expectations.

Explore 26 other fair value estimates on Oracle - why the stock might be worth 48% less than the current price!

Build Your Own Oracle Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Oracle research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Oracle research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Oracle's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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