Oracle's prolonged rally, fueled by its pivotal role in the artificial intelligence surge, faced a setback on Friday as its stock plunged 7%, marking the steepest decline since January.

The downturn occurred a day after the software giant presented an ambitious long-term outlook, amplified by AI, during an analysts’ meeting at the Oracle AI World conference in Las Vegas.

On Thursday, Oracle projected $166 billion in cloud infrastructure revenue for the fiscal year 2030, a significant increase from $18 billion in fiscal 2026. The company also forecasted adjusted earnings per share of $21 on total revenue of $225 billion for fiscal 2030, indicating annualized sales growth exceeding 31%.

The immediate response was positive, with Oracle shares climbing 3.1% on Thursday, extending a rally that has more than doubled the company's market capitalization over the past two years.

However, skepticism surfaced on Friday, as some analysts expressed doubts about Oracle's ability to meet these high targets.

"It seems like the stock might take a pause as investors digest these figures and assess the feasibility of the long-term projections," noted Rishi Jaluria, an analyst at RBC Capital Markets.