(SeaPRwire) – By: Robert Kensington
Oracle gained 2 percent to $157.13 after a 5.7 percent jump sparked by a Fed governor’s preference for holding rates steady. That relief matters because Oracle carries tens of billions in debt to finance AI data centers. Cheap money delays pain yet does not erase leverage.
Morgan Stanley nudged its price target to $210 from $207 and cited improving GPU-as-a-Service gross margins. The bank multiplied 19 times a calendar 2028 non-GAAP EPS of $10.98 to reach the figure. Bernstein called Oracle Outperform and suggested the capital-raising cycle may be ending. Ending that cycle would mark a sharp turn for a firm that has leaned on bond markets to build capacity.
Jefferies kept Buy but slashed its target to $290 from $320. Analysts there will watch OCI revenue growth near 115 percent and a 41 percent operating margin when results drop on September 10, 2026 after market close. Mizuho flagged a Veterans Affairs contract expansion that lifted the ceiling by roughly $17 billion and could run through May 2031. Execution risk and thin free cash flow temper enthusiasm even as targets rise.
Markets do not hand out trophies for promises. Oracle must ship GPU capacity and convert data center steel into cash before debt service strips optionality. If margins falter and growth stalls, the board game shifts from hyperscale hopeful to leveraged relic. Vendors will consolidate around those who survive the attrition.
Author bio: Robert Kensington, an overseas entrepreneurial veteran with decades of experience in real-economy industrial investment and expansion.