Oracle Rallies 5% as Morgan Stanley Lifts Its Price Target, CoreWeave Advances 3%

Key Points:

• AI cloud infrastructure stocks, including Oracle and CoreWeave, rose Tuesday morning following Morgan Stanley's price target increase on Oracle, sparking renewed investor enthusiasm across GPU cloud peers despite a softer overall market.
• Oracle shares gained 5% to $167.15, supported by strong Q4 FY2026 results showing 93% YoY growth in Cloud Infrastructure revenue and a 363% surge in Remaining Performance Obligations (RPO) to $638 billion, including $75 billion in prepaid GPU AI contracts.
• CoreWeave also rose 3% to $92.20, building on a 28% year-to-date gain, with Q2 2026 revenue up 112% YoY to $2.6 billion and a backlog near $104 billion, reflecting robust demand and significant capital expenditure plans similar to Oracle’s.
• Despite the positive momentum, risks remain due to Oracle’s heavy capital plan involving $40 billion in debt and equity raises and negative free cash flow, with investors closely watching Oracle’s upcoming Q1 FY2027 earnings as a key test of the AI cloud growth narrative.
• Snowflake, another AI infrastructure player, took a backseat in Tuesday’s rally after recent guidance-driven gains, though its strong Q2 FY2027 report and raised revenue guidance continue to support the broader enterprise AI cloud story.