Oracle (ORCL) stock was in the spotlight on April 24 after Wedbush Securities initiated the artificial intelligence (AI) infrastructure firm with an “Outperform” rating. According to senior analyst Dan Ives, the company is strongly positioned to hit $225 over the next 12 months, indicating potential upside of 30% from here.
The bullish call brings much-needed reprieve to Oracle stock that has otherwise been a laggard in 2026, currently down nearly 15% versus its year-to-date high.
Ives believes the market is “fundamentally misinterpreting” Oracle’s massive capital expenditures as a gamble instead of a strategic necessity.
According to Ives, the company is successfully transitioning from a legacy software behemoth into a “foundational infrastructure provider” essential to the AI era. This shift is backed by enormous, multi-year contracts, most notably a landmark $300 billion deal with OpenAI set to commence in 2027.
Wedbush recommends investing in ORCL shares also because the company has integrated its cloud infrastructure with Nvidia’s (NVDA) full-stack computing, effectively positioning itself as the landlord for the world’s most demanding artificial intelligence models.
While skeptics point to negative free cash flow as a major red flag, Ives views this as a “backward-looking” metric that ignores the sheer scale of guaranteed future demand.
“The early innings of a significant repositioning” require heavy upfront investments, the analyst noted, adding that Oracle has already proactively fortified its balance sheet.
By raising $30 billion through investment-grade bonds and preferred stock, ORCL has secured the liquidity needed to fulfill its contractual obligations.
Ives is convinced that once these high-profile partnerships with Silicon Valley heavyweights begin to show on the top line, the current dip in Oracle shares will be viewed as a massive buying opportunity.
Interestingly, Wedbush is actually among the more conservative Wall Street firms on ORCL stock.
