Oracle’s AI Revenue Up 531% Drives Outperform Rating, $225 Target
Wedbush initiated coverage on Oracle with an Outperform rating and a $225 price target, citing 531% year-over-year multi-cloud database revenue growth and strategic OpenAI and Nvidia partnerships. Shares fell 6% after Oracle canceled a $1.1–1.4 billion Nvidia rack order and unveiled plans to raise $45–50 billion for cloud expansion.
1. Wedbush Initiates Coverage with Outperform Rating
Wedbush initiated coverage on Oracle with an Outperform rating and a $225 price target, highlighting the company’s expanding AI infrastructure roles through partnerships with OpenAI and Nvidia.
2. AI Infrastructure Revenue Surge
Oracle reported a 531% year-over-year increase in multi-cloud database revenue in fiscal Q3 and holds $553 billion in remaining performance obligations, reflecting strong contract-backed demand.
3. Super Micro Rack Order Cancellation
Oracle canceled an order for 300–400 Nvidia GB300 NVL72 racks from Super Micro, a deal valued at roughly $1.1–1.4 billion, triggering a 6% drop in share price.
4. Large-Scale Cloud Expansion Financing
The company plans to raise $45–50 billion in 2026 to expand cloud infrastructure capacity for customers including OpenAI, Nvidia, xAI and Meta to address demand outpacing supply.