Analyst Says Oracle (ORCL) Stock Could Rise to $340 Amid a ‘New Customer Coming In’

Core Viewpoint - Oracle Corporation is positioned positively in the market due to its new customer TikTok US, which is expected to significantly invest in Oracle's cloud services [1][2]. Group 1: Oracle's Market Position - Oracle has secured a major contract with TikTok US, indicating a strong future in the cloud business [1][2]. - The stock price of Oracle has shown resilience, maintaining stability even during market downturns, with potential to reach recent highs above $340 [2]. Group 2: Financial Commitments and Challenges - OpenAI is projected to incur losses of approximately $115 billion over the next four years and is not expected to achieve profitability until 2030, raising concerns about Oracle's financial commitments [3]. - Analysts suggest that Oracle may need to borrow tens of billions to support the infrastructure required for its deal with OpenAI [3]. Group 3: AI Investment Landscape - Oracle announced a significant 5-year contract with OpenAI valued at $300 billion, which translates to an annual contract value of $60 billion starting in 2027 [4]. - In 2026, five major hyperscaler companies are anticipated to spend $405 billion on capital expenditures, primarily for AI infrastructure, highlighting the scale of investment in the sector [5].