Wells Fargo Bullish on ORCL: $280 Price Target Fueled by AI Surge

Wall Street wakes up to Oracle's AI potential—finally.

Wells Fargo just upgraded ORCL to overweight with a $280 target, betting big on its AI infrastructure play. The move comes as enterprise demand for AI solutions hits escape velocity.

Key drivers:

- Cloud infrastructure catching up to hyperscalers

- Enterprise AI adoption reaching inflection point

- Legacy database business printing cash to fund growth

Analysts note Oracle's late-but-aggressive pivot to AI—because nothing motivates like watching competitors' valuations 10x. The upgrade follows Oracle's recent earnings beat, where AI-related bookings grew triple digits.

Street consensus still lags, with most price targets stuck in pre-AI thinking. Either Wells Fargo's team is seeing something others missed—or they're making up for being late to the NVDA trade. (Probably both.)

Bottom line: In the land of AI infrastructure plays, even the 'old guard' gets second looks when the numbers start talking.

Oracle Cloud fights for market share while others stall out

Michael predicted that Oracle Cloud Infrastructure will hit 16% of global market share by 2029, up from just 5% in 2025.

If that happens, it puts Oracle toe-to-toe with the third-largest cloud provider by size, basically putting it in the same conversation as Amazon, Microsoft, and Google.

Right now, the company holds the biggest cloud backlog in the industry, with a $455 billion base, and a pro forma estimate north of $500 billion. Microsoft? Their last reported number sat at $392 billion.

Michael’s also highlighting upside potential in a $300 billion cloud computing contract, and says there’s even more growth ahead from Oracle’s existing $75 billion AI lab commitments. ORCL rallied by 2% yesterday.

AI trades cool off while Oracle keeps collecting receipts

Outside of Oracle, the broader tech sector looks shaky as hell. The S&P 500 is flirting with record highs again, but the comeback isn’t being led by the usual suspects. Nvidia, Microsoft, and the rest of the Magnificent Seven are taking hits. The Information Technology index has dropped 4.2% since October 28, and some of those former tech stars are dragging down the whole category.

Meanwhile, names like Eli Lilly, Cardinal Health, and Biogen are suddenly running the show. Investors clearly want to be in the market, but not necessarily in tech.

This all comes as nerves grow around whether these AI mega-bets will actually deliver profits. The sector’s still carrying a forward P/E of 28, one of the highest readings in two decades.

Lori Calvasina from RBC Capital Markets said institutional clients are expressing real concerns about overconcentration in a handful of names, and that a rotation away from tech could be brewing.

But she also noted that companies still pouring cash into data center infrastructure are seeing strong earnings growth, meaning this rotation might have limits unless other sectors start outperforming on the bottom line.

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