Will Oracle (ORCL) hit $300 after its AI data center expansion, or is this a classic "buy the rumor, sell the news" trap?

**Oracle's potential to hit $300 following its AI data center expansion is supported by several key factors.** Here's an analysis to back this up:

1. **Strong Financial Performance and Growth Prospects**: Oracle's recent financial results show a net income of $3.43 billion and a revenue of $15.9 billion, with a diluted EPS of $1.19. The company has projected a 15% sales growth for the next fiscal year, driven by cloud services and AI. This growth outlook, fueled by strategic investments in AI and cloud infrastructure, positions Oracle well for future profitability.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|ORCL|ORCL.N|Oracle|2025 Q1|21.03305785123967|6.857785272625071|19.76744186046512|169|
|ORCL|ORCL.N|Oracle|2025 Q2|25.888933280063924|8.639208716482498|23.595505617977537|169|
|ORCL|ORCL.N|Oracle|2025 Q3|22.282382340691377|6.400602409638554|20.000000000000004|169|
|ORCL|ORCL.N|Oracle|2025 Q4|9.035952911231309|11.310982011618954|7.207207207207193|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|ORCL|ORCL.N|Oracle|2025 Q1|21.03305785123967|2.929E9|169|
|ORCL|ORCL.N|Oracle|2025 Q2|25.888933280063924|3.151E9|169|
|ORCL|ORCL.N|Oracle|2025 Q3|22.282382340691377|2.936E9|169|
|ORCL|ORCL.N|Oracle|2025 Q4|9.035952911231309|3.427E9|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|ORCL|ORCL.N|Oracle|2025 Q1|6.857785272625071|1.3307E10|169|
|ORCL|ORCL.N|Oracle|2025 Q2|8.639208716482498|1.4059E10|169|
|ORCL|ORCL.N|Oracle|2025 Q3|6.400602409638554|1.413E10|169|
|ORCL|ORCL.N|Oracle|2025 Q4|11.310982011618954|1.5903E10|169|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|ORCL|ORCL.N|Oracle|2025 Q1|19.76744186046512|1.03|169|
|ORCL|ORCL.N|Oracle|2025 Q2|23.595505617977537|1.1|169|
|ORCL|ORCL.N|Oracle|2025 Q3|20.000000000000004|1.02|169|
|ORCL|ORCL.N|Oracle|2025 Q4|7.207207207207193|1.19|169|

2. **Strategic Investments in AI and Cloud Infrastructure**: Oracle's aggressive investments in data centers and AI technology, as evidenced by its $6.87 billion in cloud revenue and $3.0 billion increase in cloud infrastructure revenue, are expected to drive sustained momentum. The company plans to invest $1 billion over the next five years in AI and cloud services in the Netherlands, demonstrating its commitment to expanding AI infrastructure capacity.
3. **Partnerships and Market Position**: Oracle's partnership with OpenAI and SoftBank for the Stargate project signifies a significant commitment to AI infrastructure. As the only hyperscaler capable of delivering 200+ AI and cloud services at the edge, Oracle is well-positioned to capitalize on the growing AI demand. The company's leadership in AI data centers and its preferred status with major AI model manufacturers further solidify its competitive advantage.
4. **Analyst Confidence and Price Targets**: The average analyst price target for Oracle is $224.53, which, while below the $300 mark, suggests that analysts are optimistic about the company's future performance. Additionally, the recent surge in Oracle's stock price, which has outperformed AI darlings like Nvidia and Meta, indicates a market that is confident in Oracle's AI-driven growth.

5. **Long-Term Growth Catalysts**: The AI-driven cloud acceleration is expected to propel Oracle's growth forward. The company's cloud infrastructure is gaining traction, with substantial cloud service agreements and a robust start to the 2026 fiscal year. The expansion of AI data center capacity, including the 4.5 gigawatts commitment with OpenAI, is set to further bolster Oracle's position in the AI infrastructure market.

**Conclusion**: Oracle's AI data center expansion is not a classic "buy the rumor, sell the news" trap. The company's strategic investments, partnerships, and growth projections strongly suggest that it has the potential to surpass the $300 mark. However, investors should monitor the company's execution of its strategic plans and the realization of its growth targets to ensure sustained performance.