Wedbush reiterated its Outperform rating on Oracle on May 13, 2026. The firm raised its price target to $275 from $225. Analysts argue that investors are underestimating Oracle’s role as a primary beneficiary of the AI revolution.
Oracle is currently investing heavily in data centers to support a large backlog of contracted demand. Wedbush describes these investments as strategic and visible rather than speculative. The company’s AI-related capital expenditures are projected to reach nearly $50 billion in fiscal 2026.
This bullish outlook provides a counterpoint to recent market pressures that have driven Oracle's stock lower. Shares recently declined following higher-than-expected U.S. inflation data and broader tech sector weakness. Investors had previously expressed concern regarding the massive scale of Oracle's infrastructure spending.