Oracle $ORCL ( ▲ 9.64% ) shares climbed after DA Davidson upgraded the stock to buy and reiterated a $180 price target, implying sizable upside from recent levels. The analysts’ optimism is not just about Oracle’s core business. It is heavily tied to growing confidence that OpenAI will follow through on massive planned spending for data center capacity.
In short, if OpenAI keeps writing big checks, Oracle stands to benefit.
Why OpenAI Matters So Much
DA Davidson said it has turned more positive on OpenAI thanks to shifts in strategy, stronger frontier models, and progress on fundraising. The firm believes OpenAI may already have around $40 billion in cash and could raise up to another $100 billion by the end of the quarter.
That war chest would help fund the enormous data center buildouts Oracle is constructing to support OpenAI’s computing needs. If those projects move forward as expected, Oracle could see a meaningful boost in long-term cloud and infrastructure revenue.
From Risk to Catalyst
Until recently, some investors viewed Oracle’s deep ties to OpenAI as a risk, worried that spending commitments might not fully materialize. DA Davidson argues that perception could flip. A successful capital raise by OpenAI would signal it has the resources to honor its infrastructure plans, turning a perceived overhang into a potential catalyst.
Reports that OpenAI’s internal growth has reaccelerated, with monthly revenue growth again topping double digits, add to the narrative that demand for advanced AI services remains strong.
For Oracle, the bet is clear. If OpenAI’s ambitions keep scaling, the data centers being built today could become a powerful engine of growth tomorrow.