100% in 6 months, Stock Oracle is still attractive?

Oracle (ORCL) has been in a solid race. In the last six months, ORCL shares have fired 100%, which makes it one of the best capitalization technology names best performance. The catalyst behind this rally in Oracle Stock is the increase in the demand for the cloud infrastructure of Oracle (OCI), driven by artificial intelligence workloads (AI).

While Oracle is seeing a significant demand driven by AI, will the impulse be maintained in your business, supporting the price of your actions?

The rapid adoption of AI is to redefine the priorities of business IT, and Oracle cloud infrastructure has become a key beneficiary. Companies that build AI models or that implement applications promoted by AI require vast computer resources and specialized infrastructure, and Oracle is being aggressively positioned to capture this demand.

His strategy of integrating OCI’s capabilities directly into other important cloud ecosystems, such as AWS of Amazon (AMZN), Google Cloud Platform (GCP) and Microsoft Azure, is generously paying.

The most striking figure was the remaining performance obligations of the company (RPO), a key measure of future revenues, which were shot at $ 455 billion. That represents an increase of 359% compared to the previous year, which reflects the depth of the Oracle cloud portfolio. This growth of RPO points out the visibility of the income of several years and provides confidence to aggressively invest in the expansion of the infrastructure.

Oracle’s latest quarterly results reflect this extraordinary growth history. In the first quarter of fiscal year 2026, the company reported total income of $ 14.9 billion, which represents an increase of 11% year after year that exceeded the growth of 8% reported in the same quarter of the previous year.

Total cloud revenues, including applications and infrastructure, increased 27% to $ 7.2 billion. Oracle cloud infrastructure income increased 54% to $ 3.3 billion, in addition to a 46% increase in the same period last year. Consumption income, a proxy for use -based growth, increased 57%, and Oracle cloud database services expanded 32% to reach almost $ 2.8 billion in annual income.

The multi -cloud database business was solid, and the income shot 1,529% as Oracle integrated its database technology directly into the AWS, Azure and GCP regions. This approach is creating new ways for growth and helps Oracle win business clients that prefer multiple cloud strategies. With 34 multi -cloud data centers already operational in Azure, GCP and AWS, and 37 more planned, Oracle is strengthening its competitive positioning in the AI ​​infrastructure space.

On the applications side, cloud revenues increased by 10% to $ 3.8 billion, while Back-Office applications grew 16% to $ 2.4 billion.

Oracle is increasing capital expenses to capitalize on the growing demand for AI. The company expects capital expenses for fiscal year 2026 to reach around $ 35 billion, mainly aimed at income generation equipment in new data centers. While this expenditure can affect short -term margins and cash flows, it aims to convert RPO’s mass accumulation into income and profits.

Oracle predicts revenues from cloud infrastructure to increase 77% to $ 18 billion in this fiscal year and then expand to $ 144 billion until fiscal year 2030. In particular, much of this is already blocked in long -term contracts.

The acute rally in the ORCL stock has raised its assessment. Oracle’s shares are now negotiated with a multiple of 54.16x -in -term Price earnings, which seems high considering the growth projection of analysts of 22.3% for fiscal year 2026 and 23.1% for fiscal year 2027.

Although Oracle’s assessment may seem stretched, the adoption of AI has established unprecedented demands on computer power, data storage and networks, positioning the company to offer significant growth in the coming years. In addition, Oracle’s long -term growth trajectory justifies the premium, highlighting her massive RPO, her role as a leading infrastructure provider of AI and her associations of multiple clouds increasingly diversified.

With record growth of RPO, accelerate the adoption of multiple clouds and the aggressive expansion of infrastructure, Oracle is laying the foundations for sustained growth of income and profits. Although its valuation seems high, the solid positioning of the company in the AI ​​infrastructure market and visibility on future growth suggest that Oracle’s impulse is far from finishing, so it is an attractive long -term investment. The highest target price of $ 400 analysts reflects significant ascending potential for ORCL shares of current levels.

On the date of publication, Sneha Nahata had no positions (directly or indirectly) in any of the values ​​mentioned in this article. All information and data in this article are only for informative purposes. This article was originally published at Barchart.com