Bernstein Trims Target Price on Oracle (ORCL) to $313
Oracle Corporation (NYSE:ORCL) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.
Bernstein, on February 9, trimmed its target price on Oracle by 7.7% to $313 (from $339), but retained its Outperform call on the stock. Uncertainties regarding how the company would fund the construction of the artificial intelligence data centers it would need to meet the contracts signed in 2025 remain as a major overhang and triggered the firm to adjust its target price.
For context, OpenAI and Oracle signed a $300 billion deal in September 2025. Under this cloud services agreement, Oracle will provide OpenAI with computing power (worth 4.5 gigawatts of annual power capacity) for five years, starting in 2027 and ending in 2032.
To help fund this deal, Oracle announced on February 1 that it plans to raise $45 billion to $50 billion in 2026, through a mix of debt and equity. Around half of this raise will come via equity, ~$20 billion of which will be in common shares (through the company’s recently authorized at-the-market equity program) and the remaining in mandatory convertible preferred shares. The other half of the raise will be through debt, in the form of a one-time issuance of investment-grade senior unsecured bonds in the first half of 2026.
Bernstein estimates that this planned $45 billion to $50 billion raise is enough to cover Oracle’s funding needs until the end of fiscal year 2028.
Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas, and was founded in June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.
While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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