By Lisa Kailai Han
Publication Date: 2025-12-03 11:43:00
Wells Fargo believes Oracle has more AI-powered advances ahead. In a note on Wednesday, the bank gave the stock an Overweight rating and set a price target of $280, implying an upside of 39%. Shares of Oracle have risen 21% this year but have fallen nearly 29% in the fourth quarter as investors fear the company can maintain its high valuations. However, analyst Michael Turrin believes that Oracle is still in its early stages and the artificial intelligence boom offers room for the stock to rise. ORCL YTD Mountain ORCL YTD Chart “We expect ORCL to emerge as a leader in the AI supercycle: almost half a trillion AI deals already booked and pole position with major accounts (OpenAI, xAI, Meta, TikTok). Additionally, shares are now 42% off highs, around 25x P/E in FY27E,” he said in a note. Turrin expects Oracle to emerge as a clear market share winner in the infrastructure cloud market and for the company to reach similar size to the next closest hyperscaler by 2029. He assumes that the company…