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

TLDR

• Oracle stock rose 2% in pre-market trading Friday after Wedbush initiated coverage with an Outperform rating
• Analyst Daniel Ives set a price target of $225, versus the current price of ~$176
• Wedbush says the market is misreading Oracle’s spending as risk — most is backed by AI contracts
• Multi-cloud database revenue surged 531% year-over-year in Q3 fiscal 2026
• Wall Street consensus is Strong Buy, with an average price target of $244.89

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

Oracle Corporation, ORCL

Ives is one of Wall Street’s most-followed tech analysts, and his call is drawing fresh attention to a stock that has fallen 37.4% over the past six months.

Oracle currently trades around $176.28. Wedbush’s target implies upside of roughly 28% from that level. The broader Wall Street consensus sits even higher, at an average price target of $244.89.

The core of the Wedbush call is simple: the market is getting Oracle wrong.

Ives argues that Oracle’s heavy capital spending looks risky on the surface, but most of it is tied to existing AI contracts — meaning it’s demand-driven, not speculative.

Cloud Infrastructure at the Center

A key part of the bull case is Oracle Cloud Infrastructure, or OCI. Wedbush says OCI’s flatter network design gives it an edge in AI workloads, delivering faster, lower-latency computing than older cloud platforms.

That matters a lot when you’re training large AI models, where compute speed and efficiency directly affect cost and performance.

Oracle is also pushing its “AI for Data” strategy, built around its Oracle AI Database 26ai product. The idea is to help companies plug AI tools directly into their own enterprise data — a practical use case that could drive real adoption.

Multi-Cloud Growth Is Hard to Ignore

The multi-cloud numbers are eye-catching. Oracle’s multi-cloud database revenue rose 531% year-over-year in Q3 fiscal 2026.

That growth comes from Oracle placing its database technology inside competitor cloud ecosystems — including Amazon Web Services and Google Cloud. Rather than fighting the big clouds, Oracle is embedding itself within them.

Oracle recently announced an expanded partnership with Google Cloud, launching the Oracle AI Database Agent for Gemini Enterprise. This lets users query Oracle databases using natural language.

A separate AWS collaboration is also in progress, aimed at improving cloud-to-cloud connectivity.

These partnerships help explain the multi-cloud revenue surge. Oracle is becoming part of the infrastructure that rivals depend on.

Wedbush sees Oracle moving beyond its traditional database identity and into a foundational role in the AI infrastructure stack. Ives believes the stock doesn’t yet reflect that shift.

Over the past twelve months, Oracle generated $64.1 billion in revenue, with 14.9% growth. The company carries a market cap of around $507 billion.

Wall Street broadly agrees with the positive view. Oracle holds a Strong Buy consensus, based on 27 Buy ratings and six Hold ratings over the past three months.

The average analyst price target of $244.89 represents potential upside of nearly 39% from current levels.

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