Oracle stock appeared poised to hit new highs on Tuesday, while Nvidia and other AI-focused stocks were in focus after the enterprise software company reported solid earnings.
Shares in Oracle (stock ticker: ORCL) closed at an all-time high ahead of the company’s earnings on Monday and rose nearly 3% in Tuesday’s trading.
Management also praised the impact of AI demand on its cloud business, which is something investors hope to hear. Oracle has committed to its forecast of $65 billion in sales by 2026, but CEO Safra Katz said, “The demand for AI leaves us with a huge uptick.”
Earnings and an upbeat outlook appeared to give AI-exposed stocks another boost early Tuesday, though some turned lower after early gains. Nvidia (NVDA) stock rose nearly 1% after jumping after the open, while the chipmaker’s stock rose micron technology (MU) was 1% higher.
Despite earlier gains, Palantir Technologies (PLTR) fell 1.6% and Advanced Micro Devices (AMD) also reversed early gains to trade down 2%. C3. ai (AI) shares fell 0.3% after an initial move higher at the open. Oracle’s rival Adobe (ADBE) rose 0.2%.
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Oracle and Nvidia announced a multi-year partnership to help companies use artificial intelligence in October last year, and worked together on Nvidia’s AI supercomputing service DGX Cloud, Launched in March.
Oracle’s cloud business results were “strong,” said DA Davidson analyst Gil Lauria, underscoring the stock’s neutral valuation with a $115 price target.
“While management focused on Oracle’s role in helping companies train their language learning models (LLMs), the public conversation centered on the core drivers of Oracle’s cloud growth,” said Luria. “Most importantly, the administration reiterated its commitment to the previously established FY2026 targets,” he added.
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Mizuho Securities analysts raised their price target on Oracle to $150 from $116 and said investors “continue to underestimate Oracle’s potential” for strong earnings growth and cash flow.
“Strong fourth quarter results with upside potential from strong AI momentum (from Nvidia’s partnership and investment in OpenAI competitor Cohere) should improve investor sentiment and drive the upside for FY2026 estimates,” they said, repeating the Buy rating.
Oracle reported revenue of $13.8 billion in its fiscal fourth quarter, beating analyst estimates of $13.7 billion, according to FactSet. Adjusted earnings of $1.67 per share also beat expectations of $1.58.
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