Oracle (ORCL): HSBC Reaffirms Buy, Sets $382 PT Amid Strong Backlog and Data Center Strategy

Core Viewpoint - Oracle Corporation is recognized as a prominent AI stock on Wall Street, with HSBC maintaining a Buy rating and a price target of $382.00, reflecting confidence in Oracle's execution and backlog visibility while noting challenges in large-scale data center buildouts [1] Group 1: Funding and Infrastructure - Oracle has not yet disclosed its specific funding strategy for upcoming infrastructure projects, despite having significant needs on the horizon [2] - The company is exploring capital-intensive project funding methods such as special purpose vehicles or joint ventures to manage balance sheet risks and leverage debt markets [2] - An example of alternative funding structures is Meta's recent joint venture with Blue Owl Capital, which will issue debt to bond investors [3] Group 2: Competitive Positioning - Oracle has secured over USD 500 billion in Remaining Performance Obligations (RPO), demonstrating strong revenue visibility and commitment to meeting its obligations [3] - The company has been refining its data center model for over a decade to compete effectively against established players like AWS and Azure, showing impressive execution and market share gains [4] - Oracle is dedicated to maintaining its investment grade rating and is open to various funding options to mitigate risks [4]