Bernstein Cuts Oracle Price Target 7.7% to $313 Over AI Funding Concerns
Bernstein lowered its price target on Oracle by 7.7% to $313, citing funding uncertainties for planned AI data centers tied to its $300 billion OpenAI cloud contract. Oracle plans to raise $45–50 billion in 2026 via $20 billion in at-the-market common shares, mandatory convertible preferred shares, and investment-grade debt.
1. Bernstein Lowers Price Target
Bernstein trimmed Oracle's price target by 7.7% to $313 from $339, retaining an outperform rating while flagging uncertainty over financing the AI data centers required for its upcoming cloud commitments.
2. OpenAI Cloud Services Agreement
Oracle signed a five-year, $300 billion cloud services deal with OpenAI in September 2025 to supply 4.5 gigawatts of annual power capacity beginning in 2027, placing significant infrastructure demands on the company.
3. Planned $45–50 B Funding Strategy
To fund these commitments, Oracle will raise $45–50 billion in 2026 through roughly $20 billion in at-the-market common shares, mandatory convertible preferred shares and a one-time issuance of investment-grade senior unsecured bonds.