Oracle Cloud Deal Could Boost Revenue by $30B by 2028

Oracle's expansion in the cloud sector has significant growth potential, with a deal potentially infusing up to $30 billion in revenue by 2028. Analysts have upgraded Oracle's price target to $270, with a 30% rise in shares over the past month. The one-year price target averages at $229.93, with high estimates reaching $275 and low forecasts at $175. Potential investment opportunities hinge on future growth against current valuations.

Title: Oracle's Cloud Expansion: A Hyperscale Leap Amid AI Infrastructure Race

Oracle Corporation (ORCL) has been making significant strides in the cloud sector, with analysts predicting substantial growth potential. Recent deals, including one expected to generate over $30 billion in yearly revenue by 2028, have positioned Oracle as a leading force in the hyperscale cloud industry. Jefferies analysts, led by Brent Thill, have highlighted Oracle's pivotal role in the cloud market, upgrading their price target to $270 and noting a 30% rise in shares over the past month [1].

The deals, which will not impact revenue in fiscal year 2026, are expected to improve Oracle's visibility into long-term sales trends and reinforce its position as a hyperscaler capable of landing massive contracts. These agreements are part of a broader strategy that includes leasing 4.5 gigawatts of computing power to OpenAI, a key player in the AI industry, as part of the $500 billion Stargate project for artificial intelligence data centers and infrastructure [2].

Oracle's expansion in the cloud sector is not without competition. CoreWeave CEO Michael Intrator acknowledged Oracle as a strong rival in the AI infrastructure sector, emphasizing the importance of CoreWeave’s unique selling point in differentiating itself from Oracle. However, Oracle's strategic moves, such as offering deep discounts on its AI, cloud, and database tools to the U.S. government, have strengthened its position in the AI sector [3].

Analysts have noted that these high-visibility deals make hitting Oracle's $104 billion 2029 revenue goal look less risky and set the stage for possible upward tweaks at next month's CloudWorld event. The one-year price target averages at $229.93, with high estimates reaching $275 and low forecasts at $175. Potential investment opportunities hinge on future growth against current valuations.

Oracle's stock has surged 43% year to date, reflecting strong execution of its cloud transformation strategy, while trading at a 17.7x forward P/E despite elevated growth expectations. The company's fourth-quarter 2025 results validated this transformation thesis, with total revenues of $15.9 billion (up 11% YoY) and cloud infrastructure revenue growth accelerating to 52% [3].

Oracle's expansion in the cloud sector presents a compelling long-term investment opportunity for investors seeking exposure to AI infrastructure and enterprise cloud transformation. For existing holders, maintaining positions makes sense given Oracle's successful execution and improving competitive positioning. New investors should consider accumulating shares during market volatility, particularly if economic concerns create temporary weakness in technology valuations.

References:
[1] https://www.benzinga.com/markets/equities/25/07/46335864/oracle-stock-gains-as-30-billion-ai-cloud-deals-mark-pivotal-moment-in-race-against-rivals-jefferies-calls-it-a-hyperscale-leap-amid-trump-backed-stargate-push
[2] https://finance.yahoo.com/news/oracles-cloud-breakthrough-spurs-price-094601869.html
[3] https://www.nasdaq.com/articles/oracles-cloud-expansion-aws-3-key-reasons-hold-stock-now