This is Oracle’s Price Target After the Stargate 1 AI Project Announcement

Oracle shares charged more than 13.00 higher on Wednesday following Tuesday’s announcement of the Stargate 1 project.

Stargate 1 project is a massive $500 billion AI infrastructure initiative in collaboration with tech giants like OpenAI, Oracle and Microsoft. 

The groundbreaking project aims to create the largest AI supercomputer, dubbed "Stargate," which is set to be launched by 2028. 

The project reflects a significant investment in the future of AI technology and infrastructure within the United States.  It aims to establish a leading position in global AI capabilities.  The project plans to integrate extensive advancements in AI to enhance various sectors and maintain technological superiority​.

Shares of Oracle, Microsoft and Arm (ARM) all traded higher as each company is considered a technology partner.  

Microsoft’s Satya Nadella rebuffed concerns over the lack of funding voiced by Tesla’s Elon Musk.  The CEO of Microsoft commented that his company is good for an $80 million investment on CNBC from Davos Wednesday morning.

News of the technology partnership rallied Oracle shares back to the recent all-time highs.

Oracle stock had corrected by more than 20% from their December 9 highs near $198 following the company’s quarterly earnings report.

That report missed analysts’ expectations for earnings per share by $0.01.  Revenue for Oracle’s last quarter was also lighter than expected, though still growing by 8.6% compared to last year.

Souring investor’s outlook for the stock even more, Oracle’s management forecasted it’s current quarter’s revenue and earnings lower than Wall Street’s expectations.

Since then, shares of Oracle stock dropped to nearly $150.  The stock’s bullish 200-day moving average currently resides at that price.

For those investors that may be looking for a more attractive buying price, Oracle shares are likely to drop to $180 over the next week.

That price should see support from its round-numbered quality and the stock’s 50-day moving average.  That 50-day moving average just shifted into a bullish pattern.

From a long-term perspective, Oracle shares continue to trade in a long-term trend that started in November 2022.  The stock holds a price target of $250.

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