Oracle Leads Data Center Stocks as Applied Digital and CoreWeave Sink

"Oracle gained 5.20% last week, climbing from $145.40 to $152.96 as investors warmed up to its AI infrastructure narrative ahead of a key earnings print. Oppenheimer upgraded the stock to Outperform with a $185 price target, citing "favorable risk/reward and immunity from AI disruption." The company also picked up an enterprise software win, with Thermo Fisher adopting Oracle Cloud EPM for enterprise-wide planning."

"Bloomberg reported Friday that Oracle and OpenAI scrapped plans to expand their flagship data center in Abilene, Texas. The Abilene campus was central to the Stargate AI infrastructure initiative, and the pullback raised immediate questions about the pace of Oracle's hyperscale ambitions, weighing on the stock into the close."

"Morningstar downgraded its economic moat rating from Wide to Narrow and cut its fair value estimate from $277 to $215 per share, citing AI's potential disruption to Oracle's core database business. Melius Research also downgraded the stock to Hold with a $160 target, arguing Oracle should be valued as an infrastructure company rather than a software one."

Oracle experienced a mixed week, rising 5.20% to $152.96 as investors embraced its AI infrastructure narrative. Oppenheimer upgraded the stock to Outperform with a $185 price target, citing favorable risk/reward dynamics. Oracle secured enterprise wins including Thermo Fisher adopting Oracle Cloud EPM. However, the week ended negatively when Bloomberg reported Oracle and OpenAI scrapped plans to expand their Abilene, Texas data center, a cornerstone of the Stargate AI infrastructure initiative. This raised questions about Oracle's hyperscale ambitions. Morningstar downgraded its economic moat rating from Wide to Narrow and reduced fair value from $277 to $215, citing AI disruption risks to Oracle's database business. Melius Research also downgraded to Hold, suggesting Oracle should be valued as infrastructure rather than software.

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