Oracle Stock Could Surge 50% -- Analyst Sees Massive Upside on AI and Cloud Boom

Oracle ORCL may have more room to run as much as 50% as its expanding artificial intelligence and cloud businesses strengthen long-term growth prospects, according to a Forbes research note.

The research noted that Oracle's rapid cloud contract growth and expected rise in AI-driven workloads could act as catalysts for a renewed rally. The firm highlighted an order backlog of roughly $455 billion and projected Oracle Cloud Infrastructure (OCI) revenue reaching about $144 billion by fiscal 2030, supported by demand for hyperscale computing.

The report also pointed to Oracle's deepening partnerships with Amazon Web Services, Microsoft Azure, and Google Cloud, which enhance its position in the multi-cloud market. The upcoming launch of the company's new AI-powered health records system, Oracle Health EHR, could further strengthen its healthcare segment.

Despite solid fundamentals, including a 10% average revenue growth rate over three years and a 31% operating margin, the firm cautioned that Oracle remains vulnerable to broad market downturns. The stock trades at a price-to-earnings ratio of about 59, signaling premium valuation levels.