Oracle (ORCL) Stock Gets Double Price Target Boost from Wedbush in Under a Month

TLDR

• Dan Ives of Wedbush Securities increased Oracle’s price target to $275 from $225 on May 13, representing the second upward revision in fewer than three weeks.
• Oracle shares are currently trading approximately 50% under their September 2025 high despite robust fundamental performance.
• Revenue from Oracle Cloud Infrastructure surged 84% year over year, reaching $4.88 billion in the latest reporting period.
• Oracle’s remaining performance obligations have climbed to $553 billion, representing a 438% annual increase, bolstered by a $300 billion OpenAI cloud agreement.
• Wedbush contends that Wall Street is misinterpreting Oracle’s substantial capital expenditures, which are supported by committed contracts rather than speculative bets.

On May 13, Wedbush Securities analyst Dan Ives elevated his price objective for Oracle (ORCL) to $275 from $225 while maintaining an outperform rating. This represents the second upward adjustment in fewer than three weeks.

Oracle Corporation, ORCL

Wedbush 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 approximately 50% beneath its September 2025 high watermark. The spread between today’s price and Wedbush’s forecast represents one of the most significant valuation gaps on Wall Street at present.

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 sell-off as a “way overreaction,” highlighting Oracle’s contracted backlog as proof that genuine, committed demand exists.

The $553 Billion Backlog

The metric Wedbush repeatedly emphasizes is Oracle’s $553 billion in remaining performance obligations. This figure represents multi-year customer commitments for cloud and AI infrastructure services that have yet to be fulfilled or recognized as revenue.

This backlog has increased 438% compared to the prior year. Within this total sits a $300 billion, five-year cloud arrangement with OpenAI.

Such forward revenue visibility is uncommon within the technology industry. Wedbush believes investors are undervaluing this metric while placing excessive emphasis on short-term capital expenditure considerations.

Oracle Cloud Infrastructure revenue jumped 84% year over year to $4.88 billion during the most recent quarter. Gross margins for AI infrastructure reached 32%, surpassing the company’s stated 30% guidance threshold.

Margins and Monetization

The multicloud database segment operates at gross margins between 60% and 80%. This profitable mix is contributing to enhanced overall profitability as infrastructure operations expand.

Wedbush’s fundamental thesis is that the market is misinterpreting Oracle’s capital expenditure cycle. The firm argues investors are viewing substantial spending as a liability when it’s actually underpinned by contracts and confirmed customer demand.

The firm indicates growing confidence in the OpenAI partnership and an increasingly positive outlook on the broader data center narrative.

Oracle’s second price target upgrade from Wedbush within three weeks occurred on May 13, 2026.

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