ORCL Stock Rallies Into Earnings Week: OpenAI GPT-6 Astra Buzz, Morgan Stanley’s Big Target Give Bulls A Boost

• Morgan Stanley raised its Oracle price target to $210, implying about 30% upside, while keeping a Neutral rating.
• Investors await Oracle’s Sept. 10 earnings, with cloud growth and AI spending in focus.
• Retail sentiment for ORCL turned ‘bullish.’

Oracle Corp. stock staged a strong rebound last week, and retail traders are getting more excited as earnings day draws near.

Oracle shares rose more than 3% in overnight trading late Monday, extending a three-day, 12.6% rally fueled by fresh optimism over its AI positioning and a new product reveal from its key customer, OpenAI.

OpenAI’s latest AI model, GPT-6 Astra, is giving investors another reason to look more favorably at Oracle, as stronger demand for OpenAI’s advanced technology could ultimately translate into more business for Oracle. The companies have a $300 billion cloud supply deal, with Oracle rapidly building new data centers to meet OpenAI’s growing capacity needs.

Wall Street is also becoming more constructive heading into earnings. Morgan Stanley raised its price target on Oracle stock to $210 from $207 while maintaining a ‘Neutral’ rating, citing growing confidence in Oracle’s transition toward cloud infrastructure.  The target implies a 30% upside from the stock’s last close.

Oracle is scheduled to report its fiscal first-quarter 2027 results after the market closes on Thursday.

Oracle’s Q1 Expectations

Analysts expect Oracle’s revenue to increase 28% to $19.13 billion, which would be the fastest growth rate on record since at least 2017, according to Koyfin data. Adjusted profit is expected to rise 29% to $1.30 per share.

Investors will be watching whether its massive AI infrastructure spending is translating into sustainable revenue growth and cash generation. 

The biggest focus will be cloud infrastructure growth, which surged 93% in the latest quarter, and whether Oracle can maintain that pace as it brings new AI data-center capacity online.  

Equally important is its $638 billion remaining performance obligation (RPO) backlog, which has exploded on large AI contracts; investors will want to see how quickly that backlog converts into revenue and how much of it represents genuinely incremental demand.   

Retail View On ORCL

On Stocktwits, the retail sentiment for ORCL climbed over the past week and was ‘bullish’ as of late Monday.

“$ORCL OK everyone let’s get a grip on reality… The only reason we sold off after last earnings is because they increased their capital expenditures,” said a trader, who also blamed “The Big Short” trader Michael Burry for “dragging” the stock down via his expanded short positions. “We are gonna run up this week into earnings and then there'll be another hundred dollar increase from the close on Thursday, we guarantee ….providing they don’t raise capital expenditures again.”

Another wrote: “Oracle is right on the verge of a breakout—it just needs one final push. With Friday’s options expiration, it was no surprise that the algos pinned the stock below $160. Once it breaks out next week, as long as earnings aren’t too disappointing, $180+ is highly likely. I’m still looking for $230+ by year-end.”

Year to date, ORCL stock remains 18% lower.

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