TLDR
- On May 13, Wedbush’s Dan Ives upgraded Oracle’s price target to $275 from $225, the second bump in less than a month.
- Despite robust business fundamentals, Oracle shares trade approximately 50% under their September 2025 high.
- Oracle Cloud Infrastructure posted 84% year-over-year revenue expansion, reaching $4.88 billion in the latest reporting period.
- The firm’s contracted backlog of remaining performance obligations hit $553 billion, soaring 438% annually, featuring a $300 billion OpenAI cloud agreement.
- Wedbush contends Wall Street misinterprets Oracle’s substantial capital expenditures, which are supported by firm contracts rather than speculation.
On May 13, Wedbush’s Dan Ives elevated his Oracle (ORCL) price objective to $275 from $225 while maintaining an outperform rating. This marks his second upward revision in fewer than three weeks.
Wedbush originally launched coverage on April 24 with an outperform stance and $225 price objective, characterizing Oracle as “a foundational infrastructure provider for the AI revolution.”
Oracle stock currently trades around 50% beneath its September 2025 peak. This substantial spread between today’s valuation and Wedbush’s projection represents one of Wall Street’s more notable disconnects.
Ives initially maintained the $225 objective on April 28 after Oracle experienced a steep decline following a Wall Street Journal article that questioned OpenAI’s internal revenue projections.
He characterized that market reaction as a “way overreaction,” highlighting Oracle’s committed backlog as proof that genuine, secured demand exists.
The $553 Billion Backlog
The metric Wedbush continuously emphasizes is Oracle’s $553 billion in remaining performance obligations. This figure encompasses multi-year customer commitments for cloud and AI infrastructure services yet to be delivered or recognized as revenue.
This backlog has surged 438% compared to the prior year. Within this total sits a five-year, $300 billion cloud partnership with OpenAI.
Such forward revenue visibility is uncommon within the tech industry. Wedbush believes the market undervalues this metric while overemphasizing short-term capital investment concerns.
Oracle Cloud Infrastructure revenue jumped 84% year over year to $4.88 billion during the most recent quarter. AI infrastructure gross margins registered at 32%, exceeding the company’s stated 30% guidance threshold.
Margins and Monetization
The multicloud database segment operates at 60% to 80% gross margins. This favorable product mix is enhancing overall profitability as infrastructure operations expand.
Ives has been forthright in his public statements. “I think Oracle is going to be a tremendously bigger company in the next two, three or four years than it is today,” he stated during a Bloomberg interview.
“This stock ultimately could double as they monetize A.I. over the coming years,” he added, per The Daily Hodl.
Wedbush’s fundamental thesis is that investors are misconstruing Oracle’s capital expenditure cycle. The firm maintains that the market views aggressive spending as problematic when it’s actually underpinned by contracts and validated customer demand.
The firm indicates growing confidence in the OpenAI partnership and an increasingly optimistic outlook on the broader data center narrative.
Oracle’s second Wedbush price target elevation within three weeks occurred on May 13, 2026.
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