Oracle’s (ORCL) backlog is driving its bull thesis, analysts say

Oracle Corporation (NYSE:ORCL) is one of the 10 High-Growth Mega-Cap Stocks to Buy and Hold for the Next 10 Years. On March 24, Bank of America Securities’ Tal Liani resumed coverage of Oracle Corporation (NYSE:ORCL) and set a $200 price target. The main factors behind the company’s bullish thesis on ORCL are its massive backlog and ability to respond to increasing AI investments in the US. Oracle has a remaining performance obligation (RPO) of $553 billion, which provides a good view of the company’s future earnings.

The analyst also noted that a big risk in the bull thesis is customer concentration. A large part of this backlog comes from OpenAI. OpenAI plans to invest a total of $600 billion in computing power by 2030. Previously, in October, OpenAI CEO Sam Altman said the company could invest up to $1.4 trillion in infrastructure by 2033.

A month ago, BNP Paribas analyst Stefan…