We recently published 10 AI Analyst Calls You Should Pay Attention To. Oracle Corporation (NYSE:ORCL) is one of the stocks analysts were recently talking about.
Sarah Kunst, Managing Director at Cleo Capital, said in a recent program on CNBC that the market is getting overexcited about Oracle Corp (NYSE:ORCL) $10 billion revenue forecast from OpenAI. The analyst believes this figure does not represent realized revenue, and she sees no “clear path” for OpenAI to even “afford” this spending.
“The problem is a lot of it is OpenAI and there’s no real clear path to OpenAI being able to afford that booked revenue, being able to afford that promised revenue to pay out. And then on the other side, it’s sort of a conglomeration of mystery customers that they’re implying are kind of those really big tech names, but we don’t know for sure. A lot of these big tech names actually have the infrastructure to do this inhouse. So the question is in 2030, are they really going to be outsourcing all of this? I just don’t see the same parallels.”
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Asked about Oracle Corp (NYSE:ORCL) ability to really collect AI revenues, here is what the analyst said:
“I think the question is, is it actually going to happen some years from now because you have a business where, yes, if the big tech names need that overflow for data centers, they certainly will go with Oracle Corp (NYSE:ORCL), but they don’t have to and they might not need it. One big thing that scares me in this is that we are not yet at a point where a lot of companies are making a lot of revenue from AI. And we’re starting to hear this on the street. We’re starting to hear frustration of, okay great, but when are people actually going to be bringing in a lot of revenue? And so I just don’t know how real it is right now, how accurately anyone can forecast what their AI data center spend is going to be in 2030. It is not realized revenue. And I think the market’s reacting as though it is currently personally sitting on Larry Ellison’s island, and it’s just not there yet.”
Loomis Sayles Growth Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:
“Oracle Corporation (NYSE:ORCL) is a leader in the enterprise software market with a strong market position in database, infrastructure and application software, and cloud-based software and services. We believe the company’s competitive advantages include its large and experienced direct sales force, a founder-driven management team that reinvests relentlessly to maintain a leading intellectual property (IP) portfolio and differentiated product suite, and a large installed base of clients with high switching costs where it consistently achieves renewal and retention rates in the mid-90% range. We believe Oracle is well positioned to benefit from the continuing growth in data storage and enterprise application software, as well as the shift to cloud-based solutions.
