In a recent report, Jefferies analyst Brent Thill maintained a Buy rating and a price target of $150 for Oracle (ORCL) following news from The Information that Elon Musk’s xAI and Oracle had ceased discussions regarding a potential $10 billion AI server deal. Despite this development, Thill confirmed that the deal was not included in Oracle’s RPO and that the company is still experiencing strong demand, with its pipeline growing at a faster rate than bookings and revenue.
Thill advised investors to pay close attention to Oracle’s performance in the upcoming August quarter. He believes that Oracle is well-positioned to achieve $65 billion in revenue by fiscal 2026, despite the setback with xAI. The firm continues to see promising growth opportunities in the AI market and remains optimistic about Oracle’s potential for future success.
The Information’s report on the failed AI server deal between xAI and Oracle has not dampened Thill’s bullish outlook on Oracle’s prospects. He remains confident in the company’s ability to capitalize on the growing demand for AI technology and to deliver strong financial results in the years ahead.
Overall, Thill’s analysis suggests that Oracle is still on a positive trajectory, with the potential to achieve significant revenue growth in the coming years. Despite the setback with xAI, Oracle remains a strong player in the AI market, and Thill’s $150 price target reflects his belief in the company’s long-term potential. Investors will be eagerly awaiting Oracle’s performance in the August quarter to see if the company can continue its impressive growth and maintain its trajectory towards $65 billion in revenue by 2026.
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