Morgan Stanley lifts Oracle price target, shares rise 5% as AI cloud stocks gain

Morgan Stanley increased its price target for Oracle, prompting the shares to climb roughly 5% to $167.15 in early trade. The upgrade also lifted CoreWeave, which rose about 3% to $92.20, as investors broaden their positions in AI cloud infrastructure providers.

Oracle reported a 93% year-over-year rise in cloud infrastructure revenue to $5.79 billion for its fourth fiscal quarter, and its remaining performance obligations grew 363% to $638 billion, including $75 billion linked to prepaid or customer-supplied GPU AI contracts. Management reaffirmed a $90 billion revenue goal for fiscal 2027 and raised its non-GAAP earnings per share outlook to $8.05.

Analysts note that Oracle plans to raise about $40 billion through debt and equity in fiscal 2027, while its free cash flow was negative $23.7 billion for fiscal 2026 amid $55.7 billion of capital spending. The Morgan Stanley rating suggests the firm now views the capital plan as supportable given expected AI cloud revenue growth.

CoreWeave, whose second-quarter 2026 revenue reached $2.6 billion, up 112% year-over-year, reported a backlog near $104 billion and projected full-year 2026 capital spending of $35-$39 billion. > "Demand continues to intensify as the market broadens across sectors, geographies, workloads and generations of GPU architecture," said CEO Michael Intrator.

The broader AI cloud sector remains mixed; Snowflake posted a 35% year-over-year revenue increase to $1.55 billion in its recent quarter, and its CEO noted that AI is adding new workloads to the platform.

Investors are watching for Oracle’s upcoming first-quarter fiscal 2027 earnings, scheduled for early September, which will provide further data on cloud growth and remaining performance obligations. The outcome could influence the sustainability of the recent price moves.