Oracle Corp. (ORCL)
Barclays reduced its 12 month price target on Oracle to $330 from $400, citing rising investor caution surrounding what some view as an emerging “AI bubble” and increasing concerns about long-term funding risks across the sector. While Oracle continues to make progress in scaling its cloud infrastructure and securing AI-related workloads, Barclays notes that investor sentiment has become more selective and valuation-sensitive, particularly for companies tied closely to AI-driven growth narratives.
The firm highlights that the rapid acceleration in AI-infrastructure spending, once considered an unequivocal tailwind is now prompting questions about the sustainability of demand, deployment pace, and potential oversupply as competitors aggressively expand capacity. At the same time, heightened macro uncertainty and tighter capital conditions are causing investors to scrutinize funding durability and the ability of mega-cap tech companies to maintain elevated levels of capex while protecting margins.
Despite Oracle’s strong positioning in cloud databases and its growing relationships with major AI partners, Barclays believes the stock’s prior valuation assumed a more optimistic adoption curve than may materialize. The lowered target reflects a more measured outlook on AI investment cycles, cloud-infrastructure normalization, and the possibility of slower customer onboarding. Even so, the firm acknowledges Oracle’s strategic advantages but sees near-term volatility as likely until the broader AI-investment landscape stabilizes.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
Very detailed