ORCL Stock Is Poised For Best Week Since 1999 — Can It Sustain The Rally?

• Earlier this week, Oracle said that it had expanded its capacity partnership with Bloom Energy to procure up to 2.8 GW of the latter’s fuel cell systems.
• In February, Oracle announced that it would raise up to $50 billion to expand its cloud infrastructure to build additional capacity to meet demand from major customers.
• In March-end, Bank of America analyst Tal Liani reinstated coverage of Oracle with a ‘Buy’ rating and $200 price target, saying that the company has "large revenue potential" from accelerating AI infrastructure demand.

Shares of Oracle Corp. (ORCL) are up nearly 29% this week, on track for the best performance since June 1999, bolstered by a series of deals that reinforce its artificial intelligence infrastructure strategy.

On Thursday, the Austin, Texas-based multinational said that it plans to expand its cloud partnership with Amazon Web Services (AWS) to provide customers with high-performance connectivity between Oracle Cloud Infrastructure (OCI) and AWS. The announcement sent ORCL stock up by over 5%.

Earlier this week, Oracle also said that it had expanded its capacity partnership with Bloom Energy Corp. (BE).

Oracle Goes Big On AI  

Oracle’s expanded deal with Amazon.com (AMZN) will strengthen its AI and database offerings on AWS, allowing multicloud customers to run their apps and also transfer data between OCI and AWS.

As for the deal with Bloom Energy, Oracle is seeking to procure up to 2.8 gigawatts (GW) of the latter’s fuel cell systems to support its AI projects and help meet demand for cloud infrastructure.

Oracle is a major partner for multiple big technology companies. It has partnered with OpenAI on Project Stargate, a $500 billion AI infrastructure initiative that is focused on increasing compute capacity in the U.S. This deal includes a reported $300 billion, five-year cloud contract for Oracle to supply computing power to OpenAI starting in 2027.

In February, the company announced that it would raise between $45 billion to $50 billion in a mix of debt and equity financing to expand its cloud infrastructure to build additional capacity to meet demand from major customers including AMD, Meta, Nvidia, OpenAI, and others.

AI Payoffs

In its latest earnings report, Oracle said that demand for its AI cloud computing was growing faster than supply, while reiterating that it would likely exceed its revenue growth forecast for fiscal year 2027 and beyond.

For the third quarter (Q3) of 2026, Oracle’s revenues grew 22% to $17.2 billion, with cloud revenues climbing 44%.

The company also provided strong forecasts for FY 2026 and FY 2027, with revenues of $67 billion and $90 billion, respectively, much higher than what was initially expected by the market. Much of this is likely to come from cloud revenue, Oracle said.

What’s Wall Street Saying About Oracle’s AI Bet?

Most recently, Citizens reiterated its ‘Market Outperform’ rating on Oracle, and maintained a $285 price target after the deal announcement with Bloom Energy, according to Investing.com. This represents an upside potential of nearly 60% compared to its current trading price of about $178.47.

In March-end, Bank of America analyst Tal Liani reinstated coverage of Oracle with a ‘Buy’ rating and $200 price target, saying that the company has "large revenue potential" from accelerating AI infrastructure demand.

Meanwhile, 35 out of 44 analysts who cover ORCL stock have a rating of ‘Buy’ or higher, according to Koyfin data. These analysts have a 12-month average price target of $243.87 on its shares, representing an upside potential of about 37%.

Retail Stance

On Stocktwits, retail sentiment around ORCL shares was in the ‘extremely bullish’ territory amid ‘extremely high’ message volumes.

One bullish user cheered the move, adding that the deal with AWS “smells like an order from Anthropic” was on the way.

ORCL stock has, however, declined nearly 9% so far this year.

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