11:35 AM EDT, 09/23/2025 (MT Newswires) -- Oracle (ORCL) is rapidly evolving from a traditional software vendor into a leading AI-driven GPU data center operator, fueled by major contracts with OpenAI, Meta and xAI, Morgan Stanley said Tuesday in a report.

According to the report, Oracle Cloud Infrastructure revenue is expected to rise from $18 billion in fiscal 2026 to $144 billion by fiscal 2030, with AI services representing roughly $121 billion, or 60% of the total.

The firm projects Oracle's earnings per share can reach the $16 - $17 range by fiscal 2030, reflecting a plus 20% compound annual growth rate from fiscal 2025.

The company will invest $405 billion in capital expenditures for the next five years, mostly financed through debt and leases, while AI infrastructure service margins are expected to stabilize around 40%, Morgan Stanley said.

With the stock trading around $312, the firm raised its price target to $320 from $246 and maintained its equal weight rating, noting that the market has priced in the expected growth.

Shares of the company were down more than 4.9% in recent Tuesday trading.

Price: 311.56, Change: -16.60, Percent Change: -5.06