The $500 billion reason Wells Fargo thinks Oracle stock can rise 40% from here

Older software stocks can seem boring to growth hunters, but their cash-rich businesses and strategic moves often produce big profits.

Wells Fargo just made this case for Oracle (ORCL)Initiated coverage at Overweight after closing nearly $500 billion in AI-related deals with partners including OpenAI, xAI and Meta (META)and TikTok. The bank forecasts that Oracle Cloud Infrastructure (OCI) could grow to about 16% of the cloud market by 2029, up from about 5% in 2025. The forecast is driven by large AI compute commitments, including OpenAI’s reported 4.5 GW, involving a commitment worth more than $300 billion.

Combined with Oracle’s high-margin software franchise, Wells Fargo sees a path to around 40% upside potential, although investors should be wary of margin pressure and rising debt related to infrastructure build-out. Here’s a closer look at ORCL.

About ORCL shares

Founded in 1977, Oracle is one of the world’s…