Oracle Stock: Is a Major Rally on the Horizon?

Ahead of its critical quarterly report, sentiment on Wall Street toward Oracle has undergone a dramatic shift. Following a period of volatility, prominent market analysts are now competing to issue bullish forecasts, suggesting a potential historic buying opportunity may have emerged. The recent pullback in the software giant’s shares is being framed not as a warning, but as a potential pause before its next major AI-driven surge.

The Bullish Case Gains Momentum

The renewed optimism stems from aggressive assessments by major financial institutions. Wells Fargo initiated coverage with an outright “Buy” rating and a price target of $280. The firm’s rationale centers on Oracle’s Cloud Infrastructure (OCI), which it argues occupies a unique niche in the AI ecosystem and is capturing significant market share due to its competitive price-performance advantages.

Even more optimistic is TD Cowen. Analyst Derrick Wood reaffirmed his “Buy” recommendation and maintained a staggering price target of $400. This projection implies an upside of nearly 95% from current levels. The consensus among these experts is clear: the correction from all-time highs represents a rare entry point rather than a signal for concern.

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

A $455 Billion Backlog of Confidence

This bullish outlook is supported by a fundamental metric that stands out in the industry: Oracle’s massive backlog of Remaining Performance Obligations (RPO). As reported in September, this figure reached an incredible $455 billion.

This number underscores the scale of long-term contracts Oracle has secured for training AI models. The company is also building tangible operational momentum. Confirmation came on Wednesday that its new flagship “Oracle AI Database 26ai” will be released for on-premise solutions in January 2026, setting a clear roadmap for the next major infrastructure upgrades for its largest enterprise clients.

All Eyes on the December Report

Investor attention is now intensely focused on the upcoming quarterly results scheduled for Tuesday, December 10. The key question will be the pace at which the company can convert its enormous order backlog into recognized revenue. From a technical perspective, the stock—which has declined approximately 17.5% over the last 30 days—is searching for a stable foundation after its recent sell-off. With analysts strongly advocating a “risk-on” approach, the current corrective phase could be nearing its end.