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yesterday

Wells Fargo and Deutsche Bank Lift Oracle’s AI Case on $455 Billion Backlog and Reported OpenAI Deal

Fresh Wall Street calls put the spotlight on backlog conversion under rising financial strain.

3 High-Yield Stocks to Invest in Oracle’s AI Growth with Less Volatility
Wells Fargo just handed Oracle a $280 target and flagged nearly $500 billion in AI deals

Overview

  • Initiating coverage, Wells Fargo set an Overweight rating with a $280 target and projected OCI could reach roughly 16% cloud share by 2029, citing nearly $500 billion in AI-related deals, including a reported 4.5GW OpenAI commitment valued at more than $300 billion.
  • Deutsche Bank reiterated a Buy rating with a $375 target, calling the stock’s pullback a buying opportunity ahead of Oracle’s fiscal Q2 report on Dec. 10.
  • Oracle disclosed a $455 billion remaining performance obligation in Q1 FY26, up about 359% year over year, with cloud infrastructure revenue growing 54% to $3.3 billion.
  • Coverage highlights execution risks tied to heavy investment: capex projected at roughly $35 billion for FY26, elevated leverage, and potential margin pressure from GPU-heavy workloads.
  • Analysts also flag customer concentration, with reports indicating OpenAI could represent nearly 60% of pro forma RPO, underscoring dependency risk if deployments shift or slow.