Oracle stock climbs 3% as AI vision draws investor interest
Oracle shares rose 3% on Thursday after the company unveiled an ambitious growth forecast and confirmed a cloud infrastructure deal with Meta. At its AI World conference in Las Vegas, Oracle projected its AI-powered database and data platform revenue to reach $20 billion by fiscal 2030—up from just $2.4 billion in 2025.
Clay Magouyrk, one of Oracle’s new CEOs, told analysts the company secured $65 billion in new cloud commitments in the past 30 days alone. The deals spanned seven contracts from four customers, with Meta confirmed as one of them. Importantly, none of the deals involved OpenAI, underscoring the breadth of Oracle’s client base in the AI infrastructure space.
Meta deal highlights surging AI infrastructure demand
Meta’s involvement adds weight to Oracle’s AI push, as the social media giant ramps up capital expenditures to fuel its AI projects. Meta previously announced plans to spend $66–$72 billion this year, much of it aimed at building AI capabilities. Oracle’s infrastructure is positioned to capture a sizable portion of this demand, competing directly with Amazon and Google in cloud services.
Earlier this year, Oracle secured a separate $300 billion commitment from OpenAI. The company also emphasized that AI infrastructure margins range from 30% to 40% after accounting for land, data centers, power, and equipment costs. Renting out Nvidia chips alone brought in a 14% gross margin in Q3, according to The Information.
Analysts debate valuation as Oracle targets $225B revenue
After markets closed, Oracle issued a long-term forecast of $21 in adjusted EPS on $225 billion in revenue by fiscal 2030, signaling a 31% compound annual growth rate. This outlook surpassed analyst expectations, with LSEG projections previously set at $18.92 per share and $198.39 billion in revenue.
Despite the bullish forecast, Oracle shares slipped 2% in extended trading. Analysts remain cautious about valuation and execution risks, even as the company promises to focus only on high-margin, strategically aligned opportunities.
“I’ve read a lot of speculation that we’re chasing revenue for revenue’s sake. That’s simply not true,” said CFO Doug Kehring. “We only pursue opportunities where we have a clear line of sight to strong market margins that reflect our IP and strategic value.”
