One stock could double in price over the next few years as the company benefits from growing demand associated with artificial intelligence (AI) infrastructure, says Wedbush Securities analyst Dan Ives.
In a new interview with Bloomberg, Ives He says Wall Street is dramatically downplaying Oracle’s long-term opportunity, arguing that investors are too focused on concerns surrounding debt and capital spending rather than the potential revenue associated with artificial intelligence.
“I think Oracle will be a tremendously larger company in the next two, three, four years than it is today… This stock could eventually double as AI monetizes it over the coming years.”
According to Ives, Oracle’s growing backlog and growing role in enterprise AI deployments are not fully reflected in the company’s valuation. He says more companies are moving toward AI-driven operations, which could create a major tailwind for Oracle’s cloud and infrastructure businesses.
The comments come as Oracle increases spending to build capabilities and compete more aggressively in the race to power next-generation AI workloads. Investors are closely watching how big technology companies finance major infrastructure expansions, especially as borrowing costs continue to rise.
Although he acknowledges broader market concerns about leverage, Ives believes Oracle’s cash flow generation and business model leave it in a stronger position than many other software companies.
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