Wells Fargo Remains Bullish on Oracle (ORCL) as AI Concerns Ease

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks Investors Are Watching. On December 22, Wells Fargo reaffirmed its ‘Overweight’ rating on the stock with a $280 price target. Firm analysts believe that artificial-intelligence related concerns related to the stock are overblown and that the stock remains undervalued.

Analyst Michael Turrin noted that sentiment for Oracle has skewed more negative in the near term. Some analysts, in particular, have been worrying about Oracle's high OpenAI exposure and the sustainability of its commits over the next few years.

"Feedback post launch has leaned more bearish, w/ investors asking questions around ORCL's ability to deliver both from a financing & execution perspective given prior framed targets. We see all of the bad, but hardly any of the good being priced in,”

However, things have started taking a turn for the better, particularly due to Oracle’s deal to run TikTok’s US business.

"More generally, bulls on ORCL: 1) view the sharp pullback as overdone w/ shares back to pre-OpenAI levels, 2) see potential for meaningful market share gains in cloud IaaS, & 3) think AI still v. early innings,"

Overall, the firm is bullish on the stock driven by a sentiment rebound and Oracle’s AI tailwinds.

“Investors are overemphasizing AI and OpenAI risks while underpricing positives, with improving sentiment around Oracle’s TikTok US deal and AI growth prospects supporting the bullish outlook.”

Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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