Oracle shares rose 5 percent to $167.15 after Morgan Stanley raised its price target, lifting AI cloud infrastructure peers including CoreWeave, which gained 3 percent to $92.20. The sell-side re-rating supports the market's AI infrastructure spending case ahead of Oracle's fiscal first-quarter report on Sept. 2.
A sell-side re-rating on Oracle sent the database giant's stock up 5 percent to $167.15 on Tuesday and carried AI cloud infrastructure peers higher, with CoreWeave climbing 3 percent to $92.20 even as the broader market slipped.
Morgan Stanley raised its price target on Oracle, and the move supports the market's case for AI infrastructure spending while lifting sentiment around the company's cloud pipeline ahead of its fiscal first-quarter report, confirmed for release on Sept. 2.
"Demand continues to intensify as the market broadens across sectors, geographies, workloads and generations of GPU architecture," Michael Intrator, chief executive officer of CoreWeave, said.
Oracle's most recent earnings offer a constructive backdrop. Its Q4 FY2026 report on June 10 showed cloud infrastructure revenue up 93 percent year over year to $5.79 billion, while remaining performance obligations surged 363 percent to $638 billion. That backlog includes $75 billion tied to prepaid or customer-supplied GPU AI contracts. Management confirmed a $90 billion FY2027 revenue target and raised non-GAAP EPS guidance to $8.05.
The bear case still sits with the capital plan. Oracle plans to raise roughly $40 billion through debt and equity in FY2027, and free cash flow was negative $23.7 billion for FY2026 on $55.7 billion of capital expenditure. A Morgan Stanley re-rating tells investors the sell-side is now willing to underwrite that plan against expected AI cloud revenue growth.
Oracle stock was down 14 percent year to date through Monday's close, so Tuesday's gain reads as a recovery move off a weak year. CoreWeave, by contrast, was up 28 percent year to date, and its participation extends an already-strong run. The pure-play GPU cloud provider posted Q2 2026 revenue of $2.6 billion, up 112 percent year over year, with backlog near $104 billion. Its full-year 2026 capex guidance stands at $35 billion to $39 billion, and management raised its year-end active-power expectation to more than 1.85 gigawatts.
Snowflake, the third leg of the enterprise AI infrastructure trade, played a sideline role Tuesday after giving back ground late last week. Its Q2 FY2027 report on Sept. 2 delivered revenue of $1.55 billion, up 35.1 percent year over year, non-GAAP EPS of $0.62, and raised FY2027 product revenue guidance to $6.07 billion. "AI is bringing new workloads onto the platform," Sridhar Ramaswamy, chief executive officer of Snowflake, said.
The SPDR S&P 500 ETF Trust fell 0.12 percent, so cloud infrastructure names rose against a softer tape. Oracle's scheduled Q1 FY2027 earnings release is the next confirmation point for the AI cloud infrastructure case, where reported cloud growth and RPO trends can either extend or unwind Tuesday's move.
The gap between narrative and reported results is where the risk sits. Oracle's next earnings report will be a key test of the RPO trajectory the sell-side is now underwriting, and any deceleration could pressure the multiple Morgan Stanley is willing to pay.
This article is for informational purposes only and does not constitute investment advice.
