Oracle’s forthcoming AI World and Analyst Day are causing market excitement for good reason. TD Cowen’s reaffirmed price target of $375 indicates an increasing conviction that Oracle has at last discovered its place in the AI race. Although the company has historically been regarded as a legacy enterprise software player, its daring AI shift via cloud growth, data analytics, and healthcare platforms, is starting to redefine its narrative.
Oracle is not competing in order to outdo Nvidia or Microsoft, but instead wants to shape its own position as the data pillar of AI industries. The company’s capacity to convert long-term agreements and government supported projects into recurring stable revenue, provides it with a silent yet strong advantage.
Oracle’s AI experience is an intriguing combination of determination and cautiousness. TD Cowen’s optimism is driven by Oracle’s consistent execution and upcoming announcement of ambitious fiscal 2030 goals. The introductions of Health Connection Hub and AI developments in NetSuite demonstrate the company’s approach to infusing intelligence into the center of its business model. Yet, profitability questions regarding GPU-based cloud offerings, which is just 14% gross margin, raise legitimate concerns regarding efficiency.
Oracle’s massive multicloud backlog and AI contract is evidence of its long-term scalability. However, margins may be stressed as competition heats up. Nevertheless, Oracle’s international expansion and emphasis on industry specific AI uses indicate that it is playing a long game and is not going after hype cycles.
As Oracle enters its AI World conference, it stands at a significant point. It has the opportunity to demonstrate whether it can transform from being a vintage software behemoth into an AI infrastructure powerhouse. TD Cowen’s faith indicates that the market believes there is more upside to come rather than danger.
Whether Oracle can continue to accelerate and sustain relies upon one thing, which is its capacity to turn AI hype into stable and profitable expansion. For the moment, the company seems to be writing one of the most compelling comeback narratives in corporate tech.
