Wells Fargo & Company supports Oracle Corporation (ORCL.US): RPO data implies long-term gold mine OpenAI cooperation revenue will exceed $60 billion in 2029.

There is significant controversy in the market regarding Oracle Corporation's (ORCL.US) remaining performance obligations and its key tie with OpenAI. However, Wells Fargo & Company believes that these concerns are exaggerated, and its association with OpenAI is a long-term positive factor for Oracle Corporation. Analyst Michael Turin wrote in a research report to clients, "While we do not currently see any risk to revenue/earnings per share contribution from OpenAI, we have separately forecasted the OpenAI and non-OpenAI portions to evaluate its impact." "Based on the company's guidance and disclosed information on remaining performance obligations, we estimate revenues of $10 billion, $39 billion, $65 billion, and $78 billion for fiscal years 2027 to 2030. Utilizing Oracle Corporation's disclosed 35% average gross margin and our estimated 20% net profit margin, and assuming constant shares outstanding, we expect OpenAI to account for approximately 25-30% of earnings per share for Oracle Corporation from fiscal year 2028 to 2030." Turin, who gave Oracle Corporation a "hold" rating and a target price of $280, said that the recent significant drop in Oracle Corporation's stock price was an "overreaction." He added that considering that artificial intelligence is still in a "very early stage," Oracle Corporation has the potential to "gain significant market share" in the cloud infrastructure as a service space. On December 10, 2025, Oracle Corporation released its second quarter financial report, which was followed by a significant drop in its stock price. The database software giant's financial report showed that its revenue did not meet analyst expectations, while capital expenditures exceeded expectations. Subsequently, reports of potential delays in the construction of data centers for OpenAI became the final straw. Despite Oracle Corporation spokesperson denying the reports and stating that "all sites meeting contractual obligations have no delays and all milestones are on schedule," this did not prevent investors from selling off. The AI field faced a harsh "reality check."