Oracle Stock Poised for Rally on Massive AI Backlog

Oracle's stock, which has experienced a significant decline over the past year, is showing signs of potential recovery as investors renew their focus on the company's substantial cloud infrastructure backlog and artificial intelligence ambitions. Despite a nearly 20% drop in its share price year-to-date and a steeper fall over the past 12 months, a growing number of analysts are issuing bullish ratings and price targets, suggesting considerable upside potential. The core of the optimistic outlook rests on Oracle's massive Remaining Performance Obligation (RPO), or backlog, which surged to $638 billion in the fourth quarter of fiscal year 2026, an increase of $500 billion from the previous year. This backlog represents the total value of contracts the company has yet to fulfill. Oracle's Chief Financial Officer, Hilary Maxson, stated that this "unprecedented level of RPO provides exceptional visibility into our future revenue growth," supported by long-term customer commitments. Oracle is aggressively investing in building out its cloud infrastructure to meet the surging demand for AI workloads and database services.