Share prices of (NYSE: ORCL) surged to new highs last week after reporting strong financial results in the most recent quarter. Strong growth in Oracle's cloud services business amid the artificial intelligence (AI) spending boom underway is getting Wall Street's attention.

Analysts at William Blair upgraded Oracle to outperform (buy) with a $160 price target, representing 26% upside from the current share price of $127. Comments from management on the recent earnings call suggest the company could be at the start of a major growth spurt.

Oracle's cloud revenue, including infrastructure-as-a-service and software-as-a-service revenue, grew 25% year over year in the fiscal 2024 third quarter ending in February. But Wall Street is most excited about what this demand is doing for the company's profitability.

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Source Fool.com