Oracle Corporation’s share price has retreated sharply in recent months, falling from a September 2025 high of US$345.72 to around US$195, representing a decline of roughly 40%. The pullback has raised concerns among investors, but Wall Street analysts remain broadly optimistic about the company’s long-term outlook, citing strong momentum in artificial intelligence and cloud infrastructure.
As of December 29, 2025, Oracle shares were trading at approximately US$195.38, giving the company a market capitalisation of about US$561 billion. Despite the sell-off, the stock still reflects significant gains over the past several years, supported by Oracle’s strategic pivot toward cloud services and AI-focused enterprise solutions.
Analysts covering the stock largely maintain a positive stance, with a consensus rating of “Moderate Buy.” The average price target stands above US$300, implying potential upside of more than 55% from current levels. Several firms argue that the recent decline has created an attractive entry point, particularly for long-term investors seeking exposure to AI infrastructure and enterprise cloud growth.
The bullish outlook is anchored in Oracle’s expanding role in the AI ecosystem. The company has built a substantial cloud deal pipeline, with remaining performance obligations exceeding US$523 billion. This backlog includes large-scale, multi-year contracts linked to AI workloads and data-intensive computing, notably a major partnership with OpenAI. Analysts expect these commitments to translate into sustained revenue growth over the coming years as projects move from development to deployment.
However, the stock’s recent weakness reflects mounting investor concerns over near-term financial pressures. Oracle is investing heavily in data centre construction and cloud capacity, driving elevated capital expenditures and contributing to rising debt levels. The company’s debt-to-equity ratio now stands above 370%, while free cash flow is expected to remain under pressure in the short term. There are also worries that construction delays or cost overruns could weigh on margins before AI-related revenues fully materialise.
Despite these risks, many analysts believe the market has already priced in much of the near-term uncertainty. They argue that Oracle’s scale, enterprise customer base and deep integration into critical IT systems position it well to benefit from the next phase of AI adoption, particularly as businesses seek reliable, secure alternatives to hyperscale cloud providers.
With a dividend yield of just over 1% and a forward-looking growth narrative centred on AI and cloud computing, Oracle remains a closely watched stock as investors weigh short-term volatility against long-term structural opportunity.
Oracle shares slide 30% as AI spending fears rattle investors
