TLDR
- Wedbush analyst Dan Ives raised his Oracle price target to $275 from $225 on May 13, marking the second increase in under three weeks.
- Oracle’s stock is trading roughly 50% below its September 2025 peak despite strong underlying business momentum.
- Oracle Cloud Infrastructure revenue grew 84% year over year to $4.88 billion in the most recent quarter.
- The company’s remaining performance obligations backlog stands at $553 billion, up 438% year over year, including a $300 billion cloud contract with OpenAI.
- Wedbush says the market is misreading Oracle’s heavy capital spending, which is backed by contracted demand, not speculative investment.
Wedbush analyst Dan Ives lifted his price target on Oracle (ORCL) to $275 from $225 on May 13, reaffirming an outperform rating. That is the second price target hike in less than three weeks.
Wedbush initiated coverage on April 24 with an outperform rating and a $225 target, describing Oracle as “a foundational infrastructure provider for the AI revolution.”
Oracle stock is currently sitting roughly 50% below its September 2025 peak. That gap between the current price and Wedbush’s target is one of the wider disconnects on Wall Street right now.
Ives first reiterated the $225 target on April 28 after Oracle dropped sharply following a Wall Street Journal report that raised questions about OpenAI’s internal revenue growth.
He called that selloff a “way overreaction,” pointing to Oracle’s contracted backlog as evidence that underlying demand is real and locked in.
The $553 Billion Backlog
The number Wedbush keeps coming back to is Oracle’s $553 billion remaining performance obligations backlog. That figure represents multi-year commitments from customers for cloud and AI infrastructure that hasn’t been delivered or booked as revenue yet.
It’s up 438% year over year. Included in that figure is a $300 billion, five-year cloud contract with OpenAI.
That kind of forward visibility is rare in the technology sector. Wedbush’s view is that investors are underweighting this data point and overweighting near-term capital spending concerns.
Oracle Cloud Infrastructure revenue grew 84% year over year to $4.88 billion in the most recent quarter. AI infrastructure gross margins came in at 32%, ahead of the company’s own 30% guidance floor.
Margins and Monetization
The multicloud database business is running at 60% to 80% gross margins. That mix is helping lift overall profitability as infrastructure scales.
Ives has been direct in public comments. “I think Oracle is going to be a tremendously bigger company in the next two, three or four years than it is today,” he said in 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 core argument is that the market is misreading Oracle’s capex cycle. The firm says investors are treating heavy spending as a risk when it is actually contract-backed and tied to confirmed demand.
The firm says it is becoming increasingly comfortable with the OpenAI relationship and more constructive on the broader data center story.
Oracle’s second price target raise from Wedbush in three weeks came on May 13, 2026.
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