Wedbush analyst Daniel Ives initiates coverage on Oracle (NYSE: ORCL) with a Outperform rating and a price target of $225.00.

The analyst comments: "We are initiating coverage on Oracle with an OUTPERFORM rating and a $225 price target. We believe Oracle is on a path to become a foundational infrastructure provider for the AI Revolution, and the market is fundamentally misinterpreting the company’s aggressive, contract-backed investment cycle as speculative risk. Oracle, long known as a database and enterprise software leader, is now leveraging its decades of expertise to build a highly differentiated, next-generation cloud that is winning over the world’s most demanding AI workloads.

The secret sauce is Oracle’s two-pronged strategy of superior infrastructure and data integration. First, Oracle Cloud Infrastructure (OCI) is built on a unique, flatter network architecture that delivers the high-performance, low-latency compute essential for large-scale AI model training, giving it a distinct advantage over more complex legacy cloud platforms. Second, the company’s “AI for Data” strategy, centered on its new Oracle AI Database 26ai, is designed to bridge powerful AI models with proprietary enterprise data, a critical step for creating real-world business value. This is amplified by its multi-cloud strategy, evidenced by the company's multi-cloud database revenue (up 531% y/y in FY3Q26), which embeds its technology directly within competitor ecosystems."

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Shares of Oracle closed at $176.28 yesterday.