Oracle (NYSE:ORCL) held its AI Executive Forum on Thursday, a customer-focused event that showcased the company's AI prowess and strategy across its products.
Here's how Wall Street analysts reacted:
Analysts at Mizuho, who have a Buy rating and $150 price target on the stock, said that while Oracle is currently building out OCI superclusters to satisfy the accelerating demand for AI workloads, they believe "the current FY24 revenue guidance doesn't include much contribution from the $4B+ of AI bookings." Overall, Mizuho came away from the event "more confident in Oracle's approach to leverage AI to expand the breadth of its product offering and improve its competitive standing."
At Wolfe Research, analysts maintained an Outperform rating and $140 price target on the stock, saying: "The key message is that there is no shortage of demand for AI services, and ORCL is accelerating its innovation engine with new upgrades at every layer of the tech stack." They later stated that "demand is incredible."
Analysts at JPMorgan continue to see Oracle doing a solid job of marketing its platform capabilities into the emerging set of GenAI opportunities. They noted that "demand is not the issue," with growth in demand still exceeding growth in supply.
At Guggenheim, analysts declared that the event further validated something they've known for the time they've known Oracle — "This is truly an innovative company that will create new technologies based on original ideas, while also leveraging developments from the greater technical community to provide the best technology available for its customers." Guggenheim sees AI in the latter category and believes it could provide an opportunity for Oracle to drive more value for its customers.
Analysts at Goldman Sachs said: "Over the mid-term, we believe Oracle's innovations in both OCI and cloud applications can augment its ability to achieve its F26 revenue target of $65bn as Gen-AI features in SaaS drive on-prem conversions and legacy displacements, while AI services on the infrastructure layer support incremental share of new workloads."
Oracle is "well-positioned to capture AI mindshare at the enterprise level given the company's ability to be a one-stop-shop 'suite' vendor for its customers," said analysts at Evercore ISI. They added that their firm continues to see durable growth opportunities ahead for business units such as OCI and Strategic Apps that can drive overall revenue growth in the high-single digits over the next few years.