Oracle: Strong Buy With $638B Backlog
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- Oracle is rated Strong Buy by Seeking Alpha analyst Andres Veurink, who argues the market undervalues the company's cloud infrastructure growth and revenue visibility after shares fell sharply from their September peak.
- ORCL carries $638 billion in remaining performance obligations and is guiding for a 31% revenue CAGR through 2030, anchoring medium-term upside in already-signed contracts.
- OCI Supercluster is positioned as a leading AI inference platform through Oracle's partnership with Nvidia, a pairing the analyst says justifies premium cloud pricing.
- Oracle shares plunged from their $328 high in September after the company reported a massive order backlog increase alongside a surge in revenue obligations.
- Legacy high-margin businesses at Oracle, paired with strong cash flows, are cited as the cushion absorbing elevated data center CapEx and rising interest expense.
Why it matters: The $638B backlog and 31% CAGR guidance through 2030 lock in revenue before the year plays out, undercutting the post-September selloff narrative from $328. The Nvidia-backed OCI Supercluster is the analyst's core bull case — repositioning Oracle alongside AWS and Azure for AI inference spend rather than as a legacy database vendor.
