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Wall Street is side-eyeing Oracle’s balance sheet
Oracle has been getting the classic “nice AI story, but what about the debt?” treatment from investors. The company’s spending spree on data centers and cloud infrastructure has made credit folks nervous, especially with estimates tying roughly $133 billion of debt to the AI buildout and CDS levels flashing louder than your group chat when someone says “private credit.”
Dan Ives says: look at the demand, not the drama
Wedbush’s Dan Ives isn’t buying the doom loop. He raised his price target to $275 from $225, which implies more than 40% upside from current levels, and argued Oracle is becoming one of the most overlooked infrastructure winners in the AI race.
Why the optimism?
- Oracle says it has about $553 billion in remaining performance obligations, meaning a lot of the spending is being backed by contracted demand.
- The company’s relationship with OpenAI keeps putting it closer to the center of AI infrastructure gravity.
- In Wedbush’s view, Oracle isn’t just spending into the void — it’s building the rails for customers who already signed up.
The real question: bubble or backbone?
This is the kind of debate markets love because it’s basically a Rorschach test with balance sheets. If Oracle’s AI expansion turns into durable cloud revenue, the bears may have been panicking over the bill while ignoring the payoff. If not, well, the debt skeptics get to say “told you so” with a spreadsheet.
Big picture: Oracle is still a company in the middle of a giant, expensive bet — but at least one influential analyst thinks that bet looks more like infrastructure than excess.