Oracle (ORCL) Stock: Wedbush Predicts 47% Rally on AI Infrastructure Growth

Key Takeaways

• Wedbush boosted Oracle’s price target from $225 to $275 while maintaining its Outperform rating
• Analysts believe investors are underestimating Oracle’s AI infrastructure opportunity amid elevated capital expenditures
• Oppenheimer anticipates Q4 results showing $1.98 EPS and $18.9 billion revenue, with cloud sales climbing 46%–50%
• Fiscal Q4 earnings report scheduled for June; total revenue expected to grow 19%–21% year-over-year
• The company scores 91/100 on GF Score metrics, though current valuation appears 7.3% above calculated intrinsic value

As Oracle (ORCL) prepares for its fiscal fourth-quarter earnings release in June, Wall Street analysts are increasingly bullish on the database giant’s artificial intelligence infrastructure narrative.

Oracle Corporation, ORCL

On May 12, Wedbush Securities elevated its ORCL price objective to $275 from the previous $225 target, reaffirming an Outperform rating. With shares hovering near $186–$187 when the research note published, the new target implies substantial appreciation potential.

Wedbush’s thesis centers on what it perceives as a market misunderstanding. According to the firm, investors are overly concerned with Oracle’s aggressive, contract-driven capital expenditure cycle while overlooking the robust demand pipeline supporting these investments.

A key element in Wedbush’s upgraded outlook involves Oracle’s expanding collaboration with OpenAI. The firm expressed growing confidence in this strategic partnership and increasing optimism about Oracle’s broader data center expansion initiatives.

With revenue climbing approximately 15% over the trailing twelve months, Wedbush anticipates this growth trajectory will persist as Oracle establishes itself as a preferred provider for intensive AI workloads requiring massive scale.

Fourth Quarter Projections Point to Strong Performance

In a separate research note, Oppenheimer highlighted expectations for robust Q4 results fueled by technology infrastructure investments from prominent customers including OpenAI, Meta, and Nvidia.

Oppenheimer’s analysts project fourth-quarter earnings per share of $1.98 alongside revenue reaching $18.9 billion. Cloud-related revenue is forecast to accelerate 46%–50% compared to the prior year, while overall revenue growth should land between 19%–21%.

The firm also acknowledged Oracle’s workforce reduction initiative — involving approximately 30,000 positions — as a constructive development for operational efficiency and profit margins heading into the earnings announcement.

Oppenheimer established its own elevated price target of $235, likewise emphasizing robust technology infrastructure spending as a primary catalyst.

Valuation Metrics Present Conflicting Signals

Despite the analyst optimism, valuation indicators offer a more nuanced perspective. According to GF Value analysis, Oracle’s fair value estimate stands at $169.17, suggesting current trading levels exceed this benchmark by approximately 7.3%. This calculation places the stock in overvalued territory.

The trailing twelve-month price-to-earnings multiple registers at 32.59x, marginally above the five-year median of 32.22x. While not representing a dramatic premium, the valuation can’t be characterized as inexpensive.

Oracle’s GF Score of 91 out of 100 demonstrates impressive profitability (9/10) and growth (10/10) metrics, though financial strength and momentum indicators receive more modest 5/10 assessments.

Insider transaction data from the past three months shows net selling activity totaling $2.6 million. While this represents a single data point rather than conclusive evidence, it merits consideration.

Goldman Sachs analyst Jim Covello has also indicated a preference for hyperscale cloud providers like Oracle over semiconductor manufacturers in the AI infrastructure space — reasoning that market skepticism is already reflected in hyperscaler valuations.

Oracle’s fiscal fourth-quarter earnings announcement is scheduled for June. Market participants will scrutinize cloud revenue performance and any disclosures regarding contract commitments from major artificial intelligence customers.

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