Oracle
stock looked set to climb to fresh record highs Tuesday, while
Nvidia
and other AI-focused stocks were also in focus after the enterprise software company reported strong earnings.
Shares in
Oracle
(ticker: ORCL) closed at an all-time high ahead of the company’s earnings Monday and were up around 3% in trading Tuesday.
Management also extolled the impact of AI demand on its cloud business, something investors were hoping to hear. Oracle stuck to its forecast of $65 billion in sales by 2026, but CEO Safra Catz said “AI demand leaves us significant upside.”
The upbeat earnings and outlook appeared to give AI-exposed stocks another lift early Tuesday, although some turned lower after early gains.
Nvidia
(NVDA) stock rose around 1% having jumped around after the open, while chip maker Micron Technology (MU) was 1% higher.
Despite earlier gains,
Palantir Technologies
(PLTR) was 1.6% down, and
Advanced Micro Devices
(AMD) also reversed early gains to trade 2% lower. C3.ai (AI) stock was 0.3% down after an initial move higher at the open. Oracle’s rival
Adobe
(ADBE) was up 0.2%.
Oracle and Nvidia announced a multiyear partnership to help businesses using AI in October last year, and worked together on Nvidia’s AI supercomputing service DGX Cloud, launched in March.
D.A. Davidson analyst Gil Luria said Oracle’s cloud business results were “solid,” reiterating a Neutral rating on the stock with a price target of $115.
“While management focused on Oracle’s role in helping enterprises train their own LLMs (language learning models), the overall conversation was focused on underlying drivers of Oracle’s cloud growth,” Luria said. “Importantly, management reiterated its commitment to previously laid out FY2026 targets,” he added.
Mizuho Securities analysts raised their price target on Oracle to $150 from $116 and said investors “continue to underestimate Oracle’s potential” to generate solid top-line and cash flow growth.
“Strong fourth-quarter results with upside potential from solid AI momentum (from Nvidia partnership and investment in OpenAI competitor Cohere) should improve investor sentiment and drive upside to fiscal-year 2026 estimates,” they said, reiterating a Buy rating.
Oracle posted revenue of $13.8 billion in the fiscal fourth quarter, ahead of analysts’ estimates of $13.7 billion, according to FactSet. Adjusted earnings of $1.67 a share also beat expectations of $1.58.
Write to Callum Keown at [email protected]
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