Mizuho Reaffirms Outperform on Oracle (ORCL), Says CoreWeave Results Read-Through Overstated

Core View - Oracle Corporation is highlighted as a strong investment opportunity, with Mizuho analyst Siti Panigrahi reaffirming an Outperform rating and a price target of $400, despite recent share weakness attributed to CoreWeave's disappointing earnings [1][2] Company Performance - The weakness in Oracle's shares is deemed "largely unwarranted" as it is linked to CoreWeave's temporary supply-chain issues, not Oracle's operational performance [2] - Oracle's data center expansion in Abilene, Texas, is on schedule, positioning the company to exceed expectations [3] Market Dynamics - CoreWeave's backlog increased by 85% year-over-year to $56 billion, indicating potential growth in Oracle's remaining performance obligations [4] - Sustained pricing strength in GPU contracts was noted, with CoreWeave's first major H100 contract renewed at similar pricing levels, suggesting durability in pricing [4] Stock Performance - Oracle's stock has rallied 42% year-to-date, with a current market capitalization of $673 billion, and consensus remains a strong Buy with a potential upside of 54% [5]