Oracle (NYSE:ORCL) plans to inject more than $8 billion into Japan over the next 10 years to bolster its capabilities in response to the growing demand for cloud computing and artificial intelligence (AI) infrastructure in the region. The move will grow Oracle Cloud Infrastructure’s (OCI) footprint across Japan. In addition, Oracle will significantly expand its operations and support its engineering teams.
Oracle’s AI-Led Products Drive Record Growth
Oracle, which offers a comprehensive suite of cloud applications, is witnessing solid demand for its AI-led products. The company highlighted during the Q3 conference call that its remaining performance obligation (RPO), a key measure of future revenue, increased by 29% in Q3 and exceeded $80 billion, its all-time high.
Looking ahead, ORCL expects to win large contracts due to the solid demand for its Gen2 AI infrastructure, which will drive its RPO and future revenues. ORCL’s management expects the demand for its Gen2 AI infrastructure to exceed supply. Furthermore, the Gen2 Cloud Infrastructure business is projected to maintain its hypergrowth trajectory.
Is Oracle a Buy, Sell, or Hold?
Oracle stock has increased by over 24% in one year. The analysts’ average price target on ORCL stock is $138.61, implying 16.8% upside from current levels. Oracle stock has 16 Buy and 12 Hold recommendations for a Moderate Buy consensus rating.
