Oracle(US:ORCL) Investors·2025-09-10 15:11Core Viewpoint - Oracle's stock is experiencing significant gains following a strong fiscal first-quarter report, driven primarily by a remarkable increase in its backlog for AI-related cloud computing capacity [1][2][5]. Group 1: Financial Performance - Oracle's remaining performance obligations (RPO) surged 359% to $455 billion during the August-ended quarter, indicating a substantial backlog of contracted revenue [2]. - The company expects its RPO to reach $500 billion in the coming months, fueled by demand for Oracle Cloud Infrastructure [3]. - Oracle's cloud infrastructure revenue is projected to grow 77% to $18 billion this fiscal year and reach $144 billion by fiscal 2030 [8]. Group 2: Market Position and Growth - Oracle is positioning itself as a key player in the AI infrastructure market, having signed significant contracts with major AI companies such as OpenAI, Meta, and Nvidia [5][10]. - Analysts view Oracle's RPO backlog as a clear indicator of its multiyear growth potential in the AI sector [8]. - The company is expected to spend $35 billion on capital expenditures for fiscal 2026, up from a previous estimate of $25 billion, to scale up its data centers [12]. Group 3: Stock Performance - Oracle's stock rose over 41% to $341.42, marking its largest single-day gain since December 23, 1992, and placing it among the top performers in the S&P 500 with over 104% gains year-to-date [6][7]. - Analysts have upgraded Oracle's stock rating, with BofA Securities moving it to a buy from neutral, citing its strong position in the AI infrastructure market [9][10]. - Barclays analyst raised the price target for Oracle stock to $347, emphasizing the transformational nature of the recent quarter despite slight earnings misses [11].