Oracle's stock price has fallen by one third, but this could be a buying signal.

In the last two months, ORCL has fallen 36% from its 52-week high, and investors are a bit anxious. What are the main concerns? Two:

1. High debt pressure: Oracle now has $111 billion in debt, with only $11 billion in cash. What's even more concerning is that the company plans to raise another $38 billion in debt to expand its AI infrastructure.

2. Dependence on OpenAI: That $300 billion 5-year deal accounts for a large portion of Oracle's $455 billion RPO. The market is concerned that OpenAI is burning through cash too quickly (expected to burn $115 billion by 2029), can they sustain payments?

But there is a turning point here: OpenAI CEO Sam Altman is full of confidence, saying that they aim to achieve revenues in the hundreds of billions by 2030. Moreover, Oracle is not just relying on OpenAI—they are also seeing a surge in their multi-cloud database business, which grew by 1529% last quarter.

Data supports buying: According to Oracle's forecast, the earnings per share will be $21 in 2030. If the valuation maintains a 32x PE ratio, the stock price could soar to $672, more than three times the current price.

Investors may be overreacting now.