Oracle (ORCL) Tapped as Key AI Infrastructure Winner - BofA Boosts Target

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks Gaining Attention on Wall Street. On August 5, BofA Securities analyst Kash Rangan raised the price target on the stock to $295.00 (from $220.00) while maintaining a “Neutral” rating.

The firm’s rating affirmation is backed by greater-than anticipated capital expenditure guidance and accelerating momentum in the artificial intelligence cycle. The firm believes Oracle is a key beneficiary of the ongoing AI cycle.

“It is clear that demand for AI infrastructure is ramping,” the firm noted, pointing toward the recent guidance from Microsoft and Meta.

“We view these as demand signals into a large addressable market for AI infrastructure,” highlighting Oracle’s OCI platform to be a a key beneficiary of growing demand for third-party AI infrastructure.

“We are entering the next wave of adoption, which is likely to benefit key AI infrastructure vendors, including Oracle.”

The firm cited recent developments as demand signals.

“Several developments have unfolded over the course of the Q2 earnings cycle that point to a ramping capex cycle for AI. Microsoft guided to Q1FY26 capex of $30 billion+, well ahead of our prior estimate for $23.5 billion, citing healthy backlog for cloud migration deals pulled along by AI driven initiatives. Meta guided FY CapEx to $69bn (versus Justin Post’s estimate for $67bn) to ramp its data center footprint and AI infrastructure buildout. We view these as demand signals into a large addressable market for AI infrastructure.”

Nevertheless, the firm has reiterated its Neutral rating due to limited visibility into how much the AI infrastructure opportunity will boost revenue.

“The bull/bear debate on the stock centers on how material the AI infrastructure opportunity is for Oracle and the magnitude of upside to topline growth targets,” they wrote, citing a “nascent stage of the AI infrastructure build.”

Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.

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