Wed Jul 16 18:50:00 UTC 2025: **Summary:**

Oracle is gaining recognition as the “fourth global hyperscaler” in cloud computing, alongside AWS, Google Cloud, and Microsoft Azure, driven by a massive AI deal potentially worth $30 billion by fiscal year 2028. Evercore ISI raised its price target on Oracle stock to $270, citing Oracle’s growing market share in hyperscale cloud services, especially in sovereign and AI workloads, along with the continued growth of its applications business and the migration of database maintenance customers to the cloud. Analysts predict strong growth in Oracle’s cloud infrastructure (OCI), particularly in AI services, though this could put downward pressure on margins. While acknowledging Oracle’s potential, some suggest other AI stocks may offer greater upside.

**News Article:**

**Oracle Solidifies Position as “Fourth Hyperscaler” in Cloud Computing, Analyst Says**

**NEW YORK, NY -** Oracle Corporation (NYSE:ORCL) is emerging as a major player in the cloud computing arena, earning the title of “fourth global hyperscaler,” according to Evercore ISI. Analyst Kirk Materne raised the firm’s price target for Oracle to $270, citing a recent $30 billion cloud computing deal that could materialize by fiscal 2028, reinforcing the company’s position alongside Amazon Web Services, Google Cloud, and Microsoft Azure.

The analyst highlights Oracle’s success in capturing market share, particularly in sovereign and AI workloads, through its Oracle Cloud Infrastructure (OCI). They also emphasize continued growth in Oracle’s applications business and the ongoing migration of its database maintenance customers to the cloud.

“Oracle’s massive AI deal is front and center right now, but the longer-term bull case is broader,” Materne wrote in an investor note. “OCI is gaining share in the multihundred billion-dollar hyperscaler market, with notable strengths in sovereign and AI workloads.”

Evercore’s analysis breaks down OCI into three segments: core OCI, AI OCI, and Database-as-a-Service (DBaaS), projecting significant growth for each. AI services are expected to grow at an impressive 104% CAGR through fiscal year 2029. While this focus on AI could impact margins, Evercore predicts operating income to still grow at a 13% CAGR through fiscal year 2029.

Despite the positive outlook for Oracle, some analysts suggest investors consider other AI stocks that may offer greater potential returns and lower risk.

Oracle, a database management and cloud service provider, is increasingly recognized for its growing presence in the highly competitive cloud computing market.

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