Oracle (ORCL.US), benefiting from the surge in artificial intelligence infrastructure, experienced a sharp decline in its stock price on Friday, falling by approximately 6.9% after a streak of gains, marking its worst single-day performance since January this year. The day before, the company had unveiled an extremely optimistic long-term growth forecast for fiscal year 2030 at the "Oracle AI World" analyst conference in Las Vegas, which initially drove the stock price up by 3.1%. However, as the market began to digest the details, divisions concerning the feasibility of these projections led to concentrated selling pressure. Oracle expects its cloud infrastructure revenue to soar from $18 billion in fiscal year 2026 to $166 billion in fiscal year 2030, with total revenue reaching $225 billion, corresponding to a compound annual growth rate of over 31% and an adjusted earnings per share (EPS) target of $21. These figures reflect the management's high confidence in AI-driven business expansion and were the core rationale behind the previous strength in the stock price. Nevertheless, some analysts caution that investors need time to assess the realism of this growth rate. RBC Capital Markets analyst Rishi Jaluria indicated that the stock may enter a "digestive phase" in the short term as the market recalibrates the credibility of these long-term figures. Meanwhile, UBS analyst Karl Keirstead raised the target price to $380, asserting that the current stock price does not fully reflect the potential benefits of the AI business. He also noted concerns that Oracle's business is highly dependent on OpenAI and the bottlenecks and execution risks associated with extreme expansion. Oracle is a significant beneficiary of the current AI infrastructure cycle, recently announcing a substantial five-year collaboration with OpenAI valued at over $300 billion, providing AI chip infrastructure. Additionally, Oracle confirmed a partnership with Meta (META.US) for cloud services and reported $65 billion in cloud infrastructure commitments secured this quarter. The company's management emphasized that its AI orders are highly diversified and not solely reliant on a single client. Oracle's newly appointed co-CEO Clay Magouyrk mentioned that the new commitments this quarter came from seven contracts from four clients, "none of which were from OpenAI." He described the market's skepticism as "overly simplistic," stating that the customer base for its AI cloud services is rapidly expanding.