11:30 AM EDT, 04/23/2026 (MT Newswires) -- Oracle (ORCL) showed improved confidence in Q3 with execution and demand, but uncertainty persists around GPU as a Service business margin, Morgan Stanley said in a Thursday note.

The report said Oracle shares have risen more than 20% over the past two weeks partly on continued strength in AI compute demand data points and improved sentiment on compute capex.

"Further improvement in investor sentiment on AI related hyperscaler/neocloud capex and customer concentration risk could yield further upside,"the report said.

"However additional clarity in the gross margin profile of the GPUaaS business and financing path going forward (and a right-sizing of longer-term targets) would be needed to get more strategically positive on the shares,"the note added.

Morgan Stanley kept its equal weight rating while lowering its price target to $207 from $213 on balanced risk-reward profile.

Price: 177.79, Change: -9.71, Percent Change: -5.18