Overview
- Wall Street’s latest boost comes from Wells Fargo, which initiated Oracle at Overweight with a $280 price target and projected OCI’s share could approach about 16% by 2029 on major AI infrastructure wins.
- Deutsche Bank reaffirmed its Buy rating with a $375 target, framing the recent pullback as an entry point ahead of Oracle’s fiscal Q2 results on December 10.
- Oracle disclosed roughly $455 billion in remaining performance obligations in Q1 FY2026, with cloud-related RPO growing about 500% year over year as AI demand accelerates.
- Coverage highlights reported multi‑year OpenAI compute commitments, including a widely cited $300 billion, 4.5‑gigawatt build, underscoring OCI’s role in large AI workloads.
- Analysts warn on execution risks that include heavy capital spending (about $8.5 billion last quarter and roughly $35 billion projected for FY2026), higher leverage, margin pressure, and customer concentration reportedly dominated by OpenAI.