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Thursday's Bonus Story Is Oracle's AI Rally Over? Wall Street Thinks ORCL Could Hit $400Written by Sam Quirke. Published 10/23/2025. 
Key Points - Oracle’s 42% single-day jump in September was its biggest in many years.
- While its shares have cooled off somewhat in recent weeks, massive upside potential remains.
- The past week has seen some analysts call for as much as 45% in additional gains.
Oracle Corp (NYSE: ORCL) has been one of the standout tech stories of 2025. Its 42% single-day surge in early September — following a strong earnings report and the announcement of a $300 billion cloud partnership with OpenAI — was the company's most dramatic move in years. While the stock had been drifting higher through the summer, that update instantly changed how investors view Oracle's role in the broader artificial intelligence (AI) ecosystem and pushed shares to record highs. There are five truths reshaping America's financial future — and ignoring them could be costly. From an overextended government and vanishing savings to AI-driven job displacement and a widening wealth divide, the warning signs are clear. But according to Porter Stansberry, these same forces are also driving one of the largest wealth transfers in history. His new exposé, The Final Displacement, reveals the economic blueprint behind these shifts — and the final step he believes every American must take to protect and grow their wealth before it's too late. Click here to watch The Final Displacement for free Since then, shares have given back about 20% of those gains as investors took some profits amid valuation concerns. Still, the broader trend remains firmly bullish: the stock is up more than 130% since April. That said, pressure is now on management to keep delivering. With its price-to-earnings (P/E) ratio at the highest level in decades, Oracle needs to prove it can justify that premium. The good news for investors wondering whether the near-term upside is exhausted is that recent updates suggest Oracle's multi-month rally may only be getting started. Let's take a closer look. The Rally That Redefined Oracle It increasingly appears the September breakout marked a shift in Oracle's identity — from a legacy enterprise software company to a bona fide AI infrastructure contender. The OpenAI contract has positioned Oracle as a key supplier to some of the market's most prominent AI players, sparking a wave of optimism that looks likely to persist. Even after retracing part of that rally in recent weeks, Oracle remains up more than 130% since April, a testament to investor conviction. The correction has also helpfully cooled technical readings, pulling the Relative Strength Index (RSI) down from extremely overbought levels to a more neutral range and giving bulls fresh room to maneuver. Shares also appear to be finding recurring support around the $275 mark, where buyers have stepped in throughout October. Analysts Are Lining Up Behind the Bull Case For investors worried the selloff could gather steam, keep in mind that Wall Street's conviction has strengthened recently. JMP Securities and Scotiabank reaffirmed their Buy or equivalent ratings in the past week, with price targets of $342 and $360, respectively. Those views are echoed by even more bullish stances from Barclays and Jefferies, which recently set price targets of $400. From Oracle's $275 close on Tuesday, that implies an upside of roughly 45%—a notable premium for a roughly $785 billion company. It's also worth noting that even with the stock trading near 65x earnings, Oracle's valuation still trails many other AI plays, such as Advanced Micro Devices Inc. (NASDAQ: AMD), which trades at about 137x earnings. The distinction is that Oracle's AI growth story is still in early innings, while several peers are already deep into their AI adoption cycles. That dynamic helps explain why the current case for getting involved looks compelling to many investors. Why the Bears Might Be Wrong That said, some argue the stock's valuation has run too far. Already this week, the Goldman Sachs team reiterated its neutral rating on the stock. There is also the risk that Oracle's success will be closely tied to OpenAI's fortunes, and the company will face significant capital demands to scale its data center operations. Those are valid concerns, but they understate the strength of Oracle's financial position. The company generates steady cash flow from its legacy software businesses, which helps fund expansion without excessive leverage. A multi-billion-dollar backlog provides multi-year revenue visibility, and disciplined cost controls have preserved profitability even as Oracle ramps investment in cloud infrastructure. Investors remain in a risk-on mood for tech stocks, and as long as that persists and Oracle continues to execute, it is hard to bet against the company. If execution holds and markets stay favorable, a move toward $400 looks increasingly plausible.
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