Oracle received an Outperform rating from Wedbush in its initial coverage of the residue-led growth thesis.

Oracle Corp (NYSE:ORCL, XETRA:ORC) was given an “Outperform” rating by Wedbush in its first coverage of the company, with analysts expressing expectations that the company is entering a major expansion phase driven by demand for artificial intelligence infrastructure.

Shares of Oracle are currently trading around $170, putting the new target about 30% above recent levels.

Wedbush described Oracle as being in the early stages of a “backlog-driven AI expansion cycle” and argued that the company is increasingly positioned as a key infrastructure provider for AI workloads.

The company highlighted Oracle’s cloud business, particularly Oracle Cloud Infrastructure (OCI), as a key driver for future growth due to its architecture, which it described as optimized for high performance and low latency.