Oracle stock has incredible growth potential based on the highest price target from Wall Street.
This means investors could use the stock’s drop today as a buying opportunity.
Oracle (ORCL) stock has remained in focus as Wall Street analysts grow increasingly bullish on the AI and cloud infrastructure company’s opportunities. With shares rallying alongside the broader AI boom, investors are now wondering just how much further Oracle stock can climb. Luckily, analysts have started offering incredibly strong price targets, including one expert who sees ORCL stock reaching $400 per share.
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Five-star Guggenheim analyst John DiFucci currently holds the highest price target on ORCL stock among his Wall Street peers. DiFucci reiterated a Buy rating on Oracle shares alongside a $400 price target, implying a potential 116.32% upside for the stock.
Why Is DiFucci So Bullish on ORCL Stock?
DiFucci’s optimism comes after Oracle delivered strong Fiscal Q3 results that highlighted accelerating demand for AI infrastructure and cloud services. One major point that stood out to the analyst was Oracle’s remaining performance obligations (RPOs), which sit at $553 billion. That backlog signals strong long-term demand for the company’s AI and cloud offerings.
The analyst also noted that Oracle AI infrastructure demand continued to outpace supply, which reinforced the view that the AI spending boom is still in its early stages. Oracle has become an important player in AI infrastructure thanks to its cloud platform, database technologies, and partnerships tied to large-scale AI deployments.
Beyond AI infrastructure, DiFucci also remains optimistic about Oracle’s database technology and expanding applications business. The analyst believes that if Oracle can continue delivering on its commitments to clients, investor confidence in the company’s long-term growth story will likely further strengthen.
ORCL stock trading activity today saw some 6.3 million shares change hands, compared to a three-month average daily trading volume of about 29.62 million shares.
Considering DiFucci’s bullish stance on ORCL stock, today’s dip and muted trading activity may present a buying opportunity for traders.
Is Oracle Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Oracle is Strong Buy, based on 28 Buy and five Hold ratings over the past three months. With that comes an average ORCL stock price target of $247.04, representing a potential 33.55% upside for the shares.
The Vanguard S&P 500 ETF VOO -0.13% ▼ , which tracks the S&P 500 Index (SPX), slipped 0.25% in Tuesday’s pre-market session after April inflation came in higher than expected. Meanwhile, oil prices moved higher as tensions between the U.S. and Iran continued to weigh on markets. Notably, President Donald Trump rejected Iran’s latest proposal aimed at ending the conflict.
VOO’s Key Holdings with Highest Upside/Downside Potential
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, VOO is a Moderate Buy. The Street’s average price target of $796.00 implies an upside of 17%.
Currently, VOO’s five holdings with the highest upside potential are:
Revealingly, the VOO ETF’s Smart Score is seven, implying that this ETF will likely perform in line with the market.
Does VOO Pay Dividends?
Yes, VOO pays dividends. These payments come from the dividends paid by the companies in the S&P 500, and VOO distributes them to shareholders every quarter. The payout amount can change from quarter to quarter because company dividends vary. Investors can receive the dividend as cash or choose to automatically reinvest it into more shares through a dividend reinvestment program.
Oracle is finally proving that its aggressive AI capex cycle is translating into real demand, backlog growth, and cloud monetization, helping reduce fears around leverage and funding risk.
With OCI growth accelerating, RPO reaching $553 billion, and hyperscalers validating the broader AI infrastructure cycle, Oracle’s long-term earnings power may still be underappreciated by the market.
Oracle ORCL -3.62% ▼ , long brushed aside as a legacy enterprise software company with limited relevance in artificial intelligence (AI), is starting to look increasingly credible in the current infrastructure boom. After many months of investor skepticism around its ability to become a major hyperscaler, Oracle is finally starting to shift the narrative.
More importantly, the latest hyperscaler earnings season helped validate the broader AI infrastructure cycle, with Microsoft MSFT -1.18% ▼ , Amazon AMZN -1.18% ▼ , and Google GOOGL -0.33% ▼ all reiterating strong AI demand trends. In Oracle’s case — where the stock had been heavily pressured by funding and leverage concerns — the reaction tends to become much more explosive as fears around demand normalization begin to fade. As a result, Oracle’s 12-month stock performance has begun to converge with the broader market once again.
Although Oracle is by no means a low-risk story, I believe the thesis looks increasingly constructive today. The company continues to rely heavily on debt-funded AI capex, and execution remains critical. The combination of accelerating Oracle Cloud Infrastructure (OCI) growth, the half-trillion-dollar Remaining Performance Obligations (RPO) backlog, and improving visibility around the funding model continues to support the bull case. For that reason, I rate Oracle stock as a Buy.
The Market Finally Started Believing Oracle’s AI Spend
Before Oracle reported its Q3 results a couple of months ago, the market was primarily concerned about one key factor: the company was “spending” very aggressively — roughly $45–$50 billion in AI capex for FY26 — relative to its revenue base and cash generation. Unlike hyperscalers such as Microsoft and Amazon, which operate businesses generating roughly $140 billion in annual operating cash flow, Oracle generates cash flows closer to $20 billion.
However, the tech space is currently in an AI arms race. Clearly, “stopping investment” is dangerous, as is “continuing to invest without visible monetization.” I would argue Oracle initially looked stuck in the latter category.
At the same time, hyperscalers’ earnings season also became very important for Oracle’s narrative. Microsoft, Amazon, and Google essentially validated the thesis in Q1, as Azure AI demand remained very strong, AWS AI accelerated, and Google Cloud continued to improve.
So far, the market has started warming up to the idea that Oracle’s capex cycle may not be as reckless as previously feared. That is especially true given the repeated signs at this stage of the AI arms race that demand is genuinely absorbing supply. Oracle arguably stands to benefit even more from this shift in sentiment than hyperscaler peers, since its bear case remains much more heavily exposed to funding risk and leverage concerns.
The $553 Billion Question Now Comes Down to Execution
If the market seems to be warming up to the capex story, the next test for Oracle is execution. The half-a-trillion dollars in RPO is not immediate cash, and it’s only realizable if there’s sufficient installed capacity. That requires building data centers, securing power, recognizing revenue, and only then converting that into margins and free cash flow. That’s why the thesis has effectively become an execution story.
The most important statement from management during the last earnings call was that they want to “uncouple capex from Oracle’s capital requirements.” In practice, that would be achieved through a combination of Bring Your Own Hardware (BYOH) structures, upfront customer payments, and partners financing data centers and power capacity.
Under this new model, Oracle has already signed more than $29 billion in contracts combining BYOH structures and upfront payments, allowing the company to continue expanding without cash flows turning negative.
At the same time, Oracle has already stated that it intends to raise up to $50 billion through a mix of debt and equity financing to fund the AI buildout. However, the important detail is that the company already raised $30 billion very quickly through a combination of investment-grade bonds and mandatory convertible preferred stock. The remainder could come from other parts of the program, but management has stated that there is a defined “financing envelope” and that preserving the company’s investment-grade rating remains a priority.
In simple terms, if even a small portion of Oracle’s $553 billion RPO converts into highly recurring revenue over the next three to five years, the company’s current AI buildout starts to look much more reasonable. In that scenario, today’s $45–$50 billion financing and capex needs appear far less outrageous.
Oracle’s Earnings Power May Still Be Underappreciated
Even after the massive sell-off since its peak last September, Oracle stock is still not cheap based on near-term earnings. At roughly 25x–26x FY26 earnings and 23x–24x FY27 earnings, the stock continues to trade at a premium multiple, especially compared to larger hyperscalers with stronger balance sheets.
That said, I would argue the setup becomes increasingly compelling if management can successfully execute on the AI infrastructure backlog. If consensus estimates are even directionally right and earnings per share (EPS) reach nearly $12–$14 by FY29, the current share price would imply only about 11x–12x forward earnings.
At that point, the core risk-reward setup becomes much more interesting. Oracle is clearly not a low-risk stock today, but the market may still be underestimating the company’s out-year earnings power if the $553 billion RPO ultimately converts into revenue, margins, and free cash flow.
Is ORCL a Buy, Hold, or Sell, According to Wall Street Analysts?
Oracle stock currently carries a Strong Buy consensus rating from Wall Street analysts. Of the 34 ratings issued over the past three months, 28 are rated Buy, while six are Hold. The average price target sits at $243.17, implying a potential upside of roughly 25.45% from current levels.
Oracle’s Setup Looks Increasingly Constructive
Oracle’s story is ultimately all about execution. Today, that execution story looks increasingly feasible, given the strong demand already emerging and the massive backlog the company has built up.
The broader validation of the AI cycle by other hyperscalers, combined with Oracle already delivering capacity itself, reinforces what I believe is the most constructive path forward for the company. Meanwhile, the biggest concern around the thesis — the funding model — also looks increasingly less risky than it did just a few months ago.
For that reason, I continue to see a constructive setup for ORCL shares, which arguably still are not trading at a major premium relative to their long-term EPS potential.
The Vanguard S&P 500 ETF VOO -0.13% ▼ , which tracks the S&P 500 Index (SPX), fell 0.13% in Monday’s pre-market trading due to uncertainty over the negotiations between the U.S. and Iran. Also, oil prices rose amid continued tensions in the Middle East. At the time of writing, Brent crude (CM:BZ) was up 2.49% to $103.68 per barrel, while WTI crude (CM:CL) rose 2.28% to $97.55.
Last week, the S&P 500 and Nasdaq Composite rose more than 2% and 4%, respectively. Meanwhile, the Dow Jones rose 0.2% for the week, recording gains in five of the last six weeks.
VOO’s Key Holdings with Highest Upside/Downside Potential
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, VOO is a Moderate Buy. The Street’s average price target of $795.74 implies an upside of 17%.
Currently, VOO’s five holdings with the highest upside potential are:
Revealingly, the VOO ETF’s Smart Score is seven, implying that this ETF will likely perform in line with the market.
Does VOO Pay Dividends?
Yes, VOO pays dividends. These payments come from the dividends paid by the companies in the S&P 500, and VOO distributes them to shareholders every quarter. The payout amount can change from quarter to quarter because company dividends vary. Investors can receive the dividend as cash or choose to automatically reinvest it into more shares through a dividend reinvestment program.
Alphabet’s AI story is gaining force as Wall Street sees Google as a full-stack AI player, with Gemini, DeepMind, Google Cloud, TPUs, Search, YouTube, and Android all adding to the bull case.
However, Anthropic’s reported $200 billion Google Cloud deal could account for a large share of Alphabet’s backlog, raising questions about how broad and durable the company’s AI demand really is.
Alphabet GOOGL -0.33% ▼ , the parent firm of Google, has been on a sharp run, and this week Alphabet even briefly passed Nvidia NVDA +0.61% ▲ by market cap in after-hours trade. That marks a big shift for a firm that was once seen as at risk from the AI boom. However, there’s one glaring risk tied to Anthropic.
The new bull case is clear. Wall Street now sees Google as one of the few firms that can win in AI at more than one level. It has Gemini and DeepMind for AI models, Google Cloud for compute, TPUs for chips, and a huge reach through Search, YouTube, and Android. As Gene Munster of Deepwater Asset Management put it, “Google is one of the two best-positioned AI companies because they own most of the stack.”
That view got a boost after Alphabet’s latest results. JPMorgan Chase’s JPM +1.63% ▲ five-star analyst Doug Anmuth called the stock its “top overall pick” in tech, while Mizuho’s top analyst Lloyd Walmsley raised its price target. A key reason was Google Cloud’s backlog, which nearly doubled to $462 billion. For stock bulls, that backlog points to strong future sales from AI demand.
However, there is one catch. A large part of that cloud story may be tied to Anthropic, the AI firm behind Claude. Reports say Anthropic agreed to spend $200 billion on Google Cloud over five years. If that sum is compared with Alphabet’s cloud backlog, it could make up more than 40% of future cloud sales under contract.
That is why some analysts are more cautious. D.A. Davidson four-star analyst Gil Luria said the setup looks like Oracle Corporation ORCL -3.62% ▼ , which saw its stock jump after a huge backlog gain, only for the market to later focus on how much of that demand came from OpenAI. “They did it the same way Oracle did,” Luria said, adding that Alphabet did not make clear how much of the backlog gain came from one deal with Anthropic.
In short, the worry is not that Anthropic is a weak client. The worry is that investors may be giving Alphabet credit for broad AI demand when a large share of the new backlog could depend on a single fast-growing, cash-burning AI firm.
Google’s AI Stack Still Looks Strong
Even so, Alphabet has a wider base than most AI plays. It can sell cloud tools, rent out compute, use its own chips, and add AI into products that billions of people already use. Its TPUs also give investors a way to bet on AI chips without buying Nvidia alone.
At the same time, Alphabet is spending a lot to keep up. The company is now set to invest heavily in AI data centers and compute. That may help it defend its lead, but it also raises the bar. Investors will want to see that this spend leads to real profit, not just a larger backlog.
For now, Alphabet has moved from AI laggard to AI leader in the eyes of Wall Street. But after a strong stock run, the key issue is changing. The question is no longer whether Google can compete in AI. The real question is how much of its AI growth is broad, lasting demand, and how much depends on Anthropic.
Is Google Stock a Buy, Sell, or Hold?
Turning to the Street, Alphabet boasts a Strong Buy consensus view. Of 32 ratings issued, 28 analysts rate it a Buy, while four analysts rate it a Hold. The average GOOGL stock price target is $428.09, implying a 6.81% upside from the current price.
Apple is planning a major Camera app upgrade in iOS 27.
The upgrade would make the interface fully customizable.
Tech giant Apple AAPL +0.72% ▲ is planning a major Camera app upgrade in iOS 27 that would make the interface fully customizable. Indeed, users will reportedly be able to choose which controls appear in the app and where they are placed, including flash, exposure, timer, resolution, night mode, live photos, depth-of-field, photo styles, grid, and level options. The app will still open with today’s default controls, but users will be able to switch to an advanced setup or build their own layout. The goal is to make the Camera app more personal while also giving professionals quicker access to the tools they use most.
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The Camera app update is part of an iOS 27 redesign that Apple is expected to reveal at its annual Worldwide Developers Conference on June 8. Notably, Siri is expected to get the biggest overhaul by moving from a basic voice assistant to a more active AI agent that can take actions across apps and hold chatbot-style conversations. Apple is also adding a Siri mode inside the Camera app, which would connect to Visual Intelligence features for tasks like identifying plants or translating text.
In addition, system search is being upgraded with a “Search or Ask” bar in the Dynamic Island, which will allow users to search the phone, ask Siri, or use third-party AI tools like ChatGPT or Gemini. Unsurprisingly, the update comes as Google GOOGL -0.33% ▼ pushes ahead with Android 17 and Gemini Intelligence, which adds pressure on Apple to show that its own AI features are becoming more useful.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $314.78 per share implies 6.8% upside potential.
