In a report issued this week, John DeFucci of Guggenheim labeled Oracle a ‘decade stock,’ arguing that the software and cloud infrastructure provider could more than double from current levels over the next ten years. DeFucci cited Oracle’s unique position in the AI data-center market, where the company has committed to purchasing boatloads of GPUs and is pioneering a “bring-your-own-chip” model that could capture significant custom-chip demand as the AI landscape evolves. While Oracle’s total debt stands at approximately $108 billion—plus $24 billion in lease liabilities and over $148 billion in new lease commitments added last quarter—DeFucci contends that these obligations are largely priced in and that investors will soon shift focus back to Oracle’s remaining performance obligations, which exceed $523 billion. He forecasts that a trough in AI-data-center costs could trigger a waterfall of free cash flow, supporting a sustainable capital-return program and offsetting concerns about the company’s investment-grade credit rating. Guggenheim’s base case target of $400 per share represents more than 130% upside, underpinning the view that Oracle’s long-term growth narrative remains misunderstood by the market.

According to a recent SEC filing, Alpha Cubed Investments LLC reduced its stake in Oracle by 59.8% during the third quarter, disposing of 66,714 shares and retaining 44,825 shares valued at $12.61 million at the time of the report. This adjustment followed a broader trend in which institutional investors have been rebalancing technology portfolios in response to concerns over rising AI-infrastructure capital expenditures and the company’s elevated leverage. Meanwhile, smaller funds such as Darwin Wealth Management and Winnow Wealth LLC increased or initiated positions, purchasing between 65 and 115 shares apiece. Overall, institutional ownership of Oracle stands at 42.44%, underscoring the company’s continued appeal to large-scale asset managers despite the recent volatility. Market watchers note that any further downgrade of Oracle’s credit rating could intensify selling pressure, though proponents argue that management’s disciplined approach to debt and lease financing should preserve investment-grade status.