The success of OpenAI's new AI model could trigger a rise in Oracle's stock price — Morningstar
The company may act as a proxy for OpenAI due to its order portfolio
A positive response to OpenAI's new ChatGPT-6 Astra artificial intelligence model could boost investor confidence in Oracle stock / Photo: Tada Images/Shutterstock
A positive response to OpenAI's new ChatGPT-6 Astra artificial intelligence model could boost investor confidence in Oracle stock and drive its growth, according to Morningstar analyst Luke Young. He is quoted by MarketWatch.
Details
According to Yang, OpenAI’s success will have a positive impact on the market’s perception of the order portfolio that Oracle has secured from OpenAI. Specifically, in September 2025, Oracle signed a five-year contract with OpenAI to sell computing power worth $300 billion.
Astra is currently available only to a small group of users, but if OpenAI can achieve a “breakthrough on the product front,” it will boost demand for computing power and push Oracle’s stock price even higher, said a Morningstar analyst. Oracle’s stock rose 2.4% on Tuesday, September 8, and gained another 0.6% during trading on September 9.
“It looks like things are looking up for OpenAI, and Astra is outperforming [the flagship model of Anthropic, the world’s most valuable AI startup] Fable on several metrics,” Young said. According to him, this boosts investor confidence in the dollar amount of commitments that Oracle has yet to recognize as revenue.
"Since Astra has 'full computer control capabilities,' new use cases and products could potentially 'execute entire workflows that previous models are incapable of,'" the analyst added.
Context
MarketWatch notes that this year, investors have been concerned about Oracle's high capital expenditures—expenses directed toward areas such as data centers—as well as its profitability and ability to finance its non-cancellable contractual obligations.
As a result, Oracle’s stock is now trading at 16% below its early 2026 level. But most analysts view the stock positively: it has 26 buy recommendations (Buy and Overweight ratings) compared with just eight Hold recommendations and one Sell recommendation, according to MarketWatch.
Oracle is expected to release its financial results on Thursday, September 10. Many anticipate strong revenue growth from cloud services, although Oracle’s own expenses remain a pressing concern, according to MarketWatch.
This article was AI-translated and verified by a human editor
