Oracle Rallies 5% as Morgan Stanley Lifts Its Price Target, CoreWeave Advances 3%
A Morgan Stanley price target raise just reignited the AI cloud infrastructure trade, sending Oracle surging on a day when the broader market slipped into the red. Whether the rally reflects genuine conviction or a short-term narrative reset is the…
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AI cloud infrastructure names are moving higher Tuesday morning after a sell-side re-rating on Oracle (NYSE:ORCL | ORCL Price Prediction) reignited enthusiasm across GPU cloud peers. Morgan Stanley’s price target raise is the day’s catalyst, and it’s pulling CoreWeave (NASDAQ:CRWV) along with it as investors extend their AI infrastructure exposure across both hyperscale and pure-play GPU cloud names.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.12%, so cloud infrastructure names are rising against a softer tape. No dedicated cloud sector fund carried a same-day figure, so the broad-market benchmark alone anchors the framing contrast today.
Oracle stock is up 5% to $167.15 in early trading. Meanwhile, CoreWeave stock is up 3% to $92.20 on the same AI infrastructure tailwind.
Morgan Stanley Price Target Raise Lifts Oracle
Morgan Stanley raised its Oracle price target, and that’s the trigger behind Tuesday’s move. The raise validates the market’s AI infrastructure spending case and lifts sentiment around Oracle’s cloud pipeline heading into a fresh reporting window.
Oracle’s most recent earnings offer a constructive backdrop. Its Q4 FY2026 report on June 10 showed Cloud Infrastructure revenue up 93% year over year (YoY) to $5.79 billion, and its Remaining Performance Obligations surged 363% to $638 billion.
That RPO figure includes $75 billion tied to prepaid or customer-supplied GPU AI contracts. Oracle’s management confirmed a $90 billion FY2027 revenue target and raised non-GAAP EPS guidance to $8.05.
On the financing side, the bear case still sits with the capital plan. Oracle plans to raise approximately $40 billion through debt and equity in FY2027, and its free cash flow was negative $23.7 billion for FY2026 on $55.7 billion of capex. A Morgan Stanley re-rating tells investors the sell-side is now willing to underwrite that capital plan against expected AI cloud revenue growth.
Two Different Year-to-Date Stories
Oracle stock was down 14% year to date (YTD) through Monday’s close, so today’s gain reads as a recovery move off a weak year. At the same time, CoreWeave stock was up 28% YTD, so its participation extends an already-strong run.
That gap matters for how investors size their exposure. For CoreWeave, whose Q2 2026 revenue reached $2.6 billion, up 112% YoY, and whose backlog sits near $104 billion, today’s move layers onto elevated AI infrastructure enthusiasm (we profiled seven suppliers powering that data-center buildout beyond the chipmakers in a free report here). Oracle, by contrast, gets a narrative refresh from the sell-side re-rating after a rough stretch that saw shares fall well off their 52-week high of $341.82.
CoreWeave’s own capex profile mirrors Oracle’s in intensity if not scale. Its full-year 2026 capex guidance stands at $35 billion to $39 billion, and management raised its year-end active-power expectation to more than 1.85 gigawatts. CEO Michael Intrator stated, “Demand continues to intensify as the market broadens across sectors, geographies, workloads and generations of GPU architecture.”
Cloud Scorecard
| Ticker | Session Move | YTD |
|---|---|---|
| ORCL | up 5% | down 14% |
| CRWV | up 3% | up 28% |
Snowflake (NYSE:SNOW) is the third leg of the enterprise AI infrastructure trade, but it’s playing a sideline role today. The stock gave back ground late last week after its own guidance-driven run, which puts the cloud group’s second leg squarely in Oracle’s hands today.
The Snowflake setup still supports the broader narrative. Its Q2 FY2027 report on September 2 delivered revenue of $1.55 billion, up 35.1% YoY, non-GAAP EPS of $0.62, and raised FY2027 product revenue guidance to $6.07 billion. CEO Sridhar Ramaswamy stated, “AI is bringing new workloads onto the platform.”
What to Watch Next
Traders can watch for a hold above Tuesday’s opening levels into the close, particularly given Oracle’s still-negative year-to-date print and its scheduled Q1 FY2027 earnings release, which Oracle confirmed on September 2. That report is the next hard catalyst for the AI cloud infrastructure case, and it’s where reported cloud growth and RPO trends can either extend or unwind today’s move.
The gap between narrative and reported results is where the risk sits. Shareholders sizing their positions may want to keep their AI infrastructure allocations moderate given the capex intensity underlying both Oracle and CoreWeave, and pair their incremental exposure with defined risk parameters.
Oracle’s next earnings report will be a key confirmation point for the RPO trajectory the sell-side is now underwriting. This single figure has driven the AI cloud narrative all year, and any deceleration could test the multiple Morgan Stanley is now willing to pay.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
