Wedbush Securities analyst Dan Ives says the price of one share could double in the coming years as the company responds to growing demand related to artificial intelligence (AI) infrastructure.
In a new Bloomberg interview, Ives says say Wall Street is significantly underestimating Oracle’s long-term chances, arguing that investors are too focused on concerns around debt and capital expenditures rather than the revenue potential associated with AI.
“I think in the next two, three or four years, Oracle will become a vastly bigger company than it is now… This stock could eventually double as they monetize AI in the coming years.”
According to Ives, Oracle’s growing backlog and growing role in enterprise AI implementations are not fully reflected in the company’s valuation. He says more and more companies are moving to AI-driven operations, which could create a major tailwind for Oracle’s cloud and infrastructure businesses.
The comments come as Oracle increases spending to expand capacity and compete more aggressively in the race to power next-generation AI workloads. Investors have been keeping a close eye on how big tech companies finance major infrastructure expansions, especially as financing costs remain high.
While recognizing broader market concerns about leverage, Ives believes Oracle’s cash flow generation and business model are in a stronger position than many other software companies.
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