Oracle Breaks Ground on $4.5 Billion Nashville Campus as Bernstein Reaffirms $325 Target

Oracle broke ground Thursday, Nov. 12, on a $4.5 billion headquarters campus in Nashville, one day after Bernstein reaffirmed its $325 price target as analyst Mark Moerdler forecast a return to positive free cash flow in fiscal 2028.

The 78-acre East Bank development is planned with 23 buildings and 759,838 square feet of office space. The former industrial site is intended for Oracle's engineering, technical and healthcare technology teams. Plans include retail shops, a 120-room Nobu hotel and restaurant, an amphitheater and a six-acre lake. The campus design calls for more than 1,900 trees and a bid for LEED Gold certification.

Oracle set aside $175 million for public infrastructure, including an approximately 860-foot pedestrian bridge over the Cumberland River, a park, greenway links and road improvements. Community commitments include $1.55 million for Trinity Community Commons and $150,000 in grants to 30 local nonprofits. A $10 million partnership with the Nashville Symphony is intended to help the orchestra resume its 2026-27 season.

Oracle CEO Clay Magouyrk called the groundbreaking “an important next step” in the company's commitment to Nashville. Tennessee Gov. Bill Lee said the project would bring high-quality jobs to the state. Nashville Mayor Freddie O'Connell, Gov.-elect Marsha Blackburn and U.S. Sen. Bill Hagerty also attended.

Bernstein reaffirmed its Outperform rating and $325 target Wednesday, Nov. 11. Moerdler said Oracle's heavy capital spending may be obscuring its longer-term AI opportunity. He estimates the company is about 18 months from positive free cash flow, which he expects in the second half of fiscal 2028. He does not expect Oracle to need additional outside funding.

Moerdler also pointed to a potential OpenAI IPO as a possible test of whether the AI ecosystem can support its large computing commitments. He noted that Oracle shares were valued at about five times sales, a multiple he viewed as below the company's historical average.

A separate price view came Oct. 20, when Bank of America Securities kept its $240 12-month target amid higher spending tied to data center expansion, in an earlier Oracle target update. Oracle expects to hire thousands of workers during construction, with the first buildings scheduled to open by 2030.