Oracle Shares Poised for Major Rebound on AI Infrastructure Optimism

Recent trading sessions have tested the patience of Oracle shareholders, marked by a noticeable decline in share price and mounting skepticism. However, a new analysis from Wells Fargo has cut through the gloom, suggesting a potential dramatic reversal. The firm's strategists have not only issued an aggressive price target but also identified the start of what they term an "AI super-cycle," which could propel the stock significantly higher following its recent correction.

The validity of this bullish outlook will face a critical test in the coming week. Oracle has confirmed it will release its second-quarter results after the market closes on Wednesday, December 10, 2025. This report is set to be a moment of truth for investors, shifting the focus from projections to concrete data. Key metrics will include the execution pace of major contracts, particularly with OpenAI, and the efficiency of the company's capital expenditure. Until these figures are public, the market is likely to remain a tug-of-war between the promise of a transformative cycle and concerns over near-term costs.

Wells Fargo's Bullish Counter-Argument

While Oracle's equity has shed approximately 17% over the past 30 days, Wells Fargo analysts see the current weakness as a prime entry opportunity. They have assigned the stock an "Overweight" rating alongside a price target of $280 per share. This projection implies a potential upside of roughly 40% from current trading levels.

The core of their thesis hinges on Oracle's strategic evolution. The analysts contend the company is successfully transitioning from a traditional database giant into a leading infrastructure provider for artificial intelligence. They forecast that Oracle's market share in the cloud infrastructure segment (OCI) could nearly triple from about 5% today to almost 16% by 2029. A massive backlog of orders provides substantial evidence for this long-term growth narrative.

Should investors sell immediately? Or is it worth buying Oracle?

The $300 Billion Partnership and Investor Concerns

Central to the optimistic forecast is Oracle's strategic collaboration with OpenAI. Reports indicate a multi-year agreement valued at over $300 billion. This partnership is viewed as a major endorsement of Oracle's technical capabilities in training large language models, far beyond a simple publicity move.

Wells Fargo points out that Oracle's total remaining performance obligation (RPO) has reportedly ballooned to a colossal $455 billion. The analysts argue the market has recently made the error of focusing too intently on the short-term capital expenditures required for infrastructure build-out, while overlooking the long-term, secured revenue streams from these monumental deals.

This myopic focus explains recent investor nervousness. After peaking in September, the stock came under pressure driven by specific worries:
* Rising debt levels due to an aggressive data center expansion plan.
* Questions regarding the sustainability of AI-related spending across the industry.
* Short-term pressure on profit margins from these heavy investments.

The fresh analysis from Wells Fargo directly challenges this pessimistic view and has contributed to a stabilization in the stock's chart pattern.