Oracle is on the rise with a $300 billion investment in AI.

Oracle Corp (NYSE:ORCL) is emerging as the fourth largest hyperscaler, expanding its AI-powered data center infrastructure and preparing to compete with major technology giants.

Bank of America Securities analyst Brad Sills stated that with planned capital expenditures exceeding $300 billion by 2030, Oracle is building an AI-focused cloud business model supported by predictable cash flows from long-term compute contracts.

Sills issued an 'Outperform' rating for Oracle, setting a target price of $368, noting that the company has transformed into the fourth-largest hyperscaler.

The company's data center strategy aligns well with industry leaders such as Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT), and Alphabet Inc (NASDAQ:GOOGL).

To address investor concerns, Sills expressed that Oracle's AI infrastructure projects could offer attractive returns, referring to a special analysis from Bank of America on the economics of the company's OpenAI applications.

Sills emphasized that Oracle's financing strategy significantly reduces execution risk. The company has financed many of its AI infrastructure projects with low-cost borrowing; this includes a $18 billion bond issuance in September and plans for another $38 billion issuance this week. Both transactions are expected to carry costs below projected internal rates of return, improving the economic conditions for Oracle's AI expansion.

Sills also highlighted Oracle's contract discipline, stating that the company structures its AI compute contracts as non-cancelable, binding agreements, thus securing stable, predictable cash flows. This provides a significant advantage over competing hyperscalers that build speculative capacity.

Sales estimates for the fiscal year 2026 are projected at $67.66 billion, with earnings per share (EPS) expected to be $6.85.