Oracle Corporation

New York Stock Exchange
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Bullish +75

Oracle (ORCL) Gets Outperform Rating From Wedbush as AI Infrastructure Play

📈 Oracle stock gained 2% in pre-market trading after Wedbush analyst Daniel Ives initiated coverage with an Outperform rating and a $225 price target.

⬇️ The stock has declined 37.4% over the past six months despite the analyst's positive outlook and current trading price around $176.28.

📊 Wedbush’s target implies approximately 28% upside, while the broader Wall Street consensus average price target sits higher at $244.89 (nearly 39% upside).

💻 Analyst Ives argues that Oracle’s heavy capital spending is demand-driven by existing AI contracts rather than being speculative or risky.

☁️ A key bull case focus is Oracle Cloud Infrastructure (OCI), which Wedbush says has a flatter network design offering faster, lower-latency computing for AI workloads.

🧠 Oracle is advancing its "AI for Data" strategy centered on the Oracle AI Database 26ai product to embed AI tools directly into enterprise data ecosystems.

📈 Multi-cloud database revenue surged 531% year-over-year in Q3 fiscal 2026 as Oracle places its technology inside competitor cloud ecosystems like AWS and Google Cloud.

🤝 Oracle announced an expanded partnership with Google Cloud to launch the Oracle AI Database Agent for Gemini Enterprise, allowing natural language database queries.

☁️ A separate collaboration with AWS is underway to improve cloud-to-cloud connectivity, further supporting the multi-cloud revenue surge.

🔄 Wedbush views Oracle as transitioning from a traditional database identity to a foundational role in the AI infrastructure stack.

💰 Over the last twelve months, Oracle generated $64.1 billion in revenue with 14.9% growth and holds a market cap of around $507 billion.

📊 Wall Street consensus remains positive with a Strong Buy rating based on 27 Buy ratings versus six Hold ratings over the past three months.

💡 Analysts believe Oracle stock does not yet fully reflect its shifting role in AI infrastructure, creating potential for further upside.

Bullish Signals
  • Wedbush analyst Daniel Ives initiated coverage on Oracle with an Outperform rating and a $225 price target, signaling strong institutional confidence.
  • Oracle currently trades around $176.28, implying approximately 28% upside to Wedbush's target, with the broader Wall Street consensus at an even higher average price target of $244.89.
  • Wedbush argues that Oracle's heavy capital spending is demand-driven rather than speculative, as it is primarily tied to existing AI contracts.
  • Oracle Cloud Infrastructure (OCI) offers a competitive edge in AI workloads due to its flatter network design, delivering faster and lower-latency computing.
  • Oracle is successfully expanding its multi-cloud presence, with multi-cloud database revenue rising 531% year-over-year in Q3 fiscal 2026.
  • Oracle's strategy of embedding its technology into competitor ecosystems like Amazon Web Services and Google Cloud is driving significant growth without direct conflict.
  • The expanded partnership with Google Cloud to launch the Oracle AI Database Agent for Gemini Enterprise enables natural language querying of Oracle databases, enhancing adoption.
  • Over the past twelve months, Oracle generated $64.1 billion in revenue with 14.9% growth, while maintaining a substantial market cap of around $507 billion.
  • Oracle holds a Strong Buy consensus among Wall Street analysts, based on 27 Buy ratings and six Hold ratings over the past three months.
Risk Factors
  • Oracle stock has fallen 37.4% over the past six months despite recent positive analyst coverage.
  • The core Wedbush bullish argument rests on the assumption that Oracle's heavy capital spending is demand-driven, which carries significant risk if market dynamics shift.
  • Oracle currently trades at $176.28, well below Wall Street consensus price targets of roughly $244.89.
  • Even with a Strong Buy consensus from analysts, there are six Hold ratings in addition to the 27 Buy ratings over the past three months, indicating divergent views.
  • Oracle's reliance on multi-cloud revenue growth is tied to partnerships where competitors like AWS and Google Cloud already dominate market share.
  • The article mentions a partnership with Google Cloud launching AI Database Agent for Gemini Enterprise, which depends on Oracle integrating into rival ecosystems.
  • Recent news coverage of Israel approving BILS stablecoin issued by crypto firm Bits of Gold suggests potential regulatory or macroeconomic distractions in the broader tech sector.
  • The multi-cloud database revenue surge of 531% year-over-year is tied to specific partnerships that may not be replicable at scale.
Full Analysis
Oracle Corporation shares rose approximately 2% in pre-market trading on Friday following Wedbush analyst Daniel Ives initiating coverage with an Outperform rating and a $225 price target. The current stock price is around $176.28, implying roughly 28% upside according to Wedbush, though the broader Wall Street consensus shows even higher potential with an average price target of $244.89. Ives notes that Oracle has fallen 37.4% over the past six months but argues the market is mispricing the company by overlooking its shift from a traditional database vendor to a foundational player in the AI infrastructure stack. The core of Wedbush’s thesis centers on Oracle Cloud Infrastructure (OCI), which Ives believes offers a competitive edge due to its flatter network design that supports faster, lower-latency computing critical for training large AI models. Additionally, Oracle is executing an 'AI for Data' strategy using its Oracle AI Database 26ai product, aiming to integrate AI tools directly into enterprise environments. Financial highlights include a massive 531% year-over-year increase in multi-cloud database revenue during Q3 fiscal 2026, driven by Oracle embedding its technology within rival ecosystems like Amazon Web Services and Google Cloud. This strategy is further bolstered by strategic partnerships, including an expanded collaboration with Google Cloud that launched the Oracle AI Database Agent for Gemini Enterprise, allowing natural language queries of Oracle databases, and ongoing AWS efforts to improve cloud-to-cloud connectivity. Over the last twelve months, Oracle generated $64.1 billion in revenue representing 14.9% growth while maintaining a market cap of around $507 billion. Wall Street largely agrees with the positive outlook, evidenced by a Strong Buy consensus based on 27 Buy ratings and six Hold ratings over the past three months.