AI cloud business severely undervalued? Wells Fargo: Market overly pessimistic, Oracle has 50% upside potential

``` Wells Fargo believes that the current market pessimism surrounding artificial intelligence (AI) investments is “overdone,” and the severely undervalued Oracle is now facing a major opportunity for a value reappraisal. On Monday (December 22), according to CNBC, Wells Fargo released its latest report stating that thanks to the strong potential of Oracle’s AI cloud infrastructure, the company’s stock price implies nearly 50% upside. This positive outlook comes amid intense volatility in the technology sector and growing concerns over overvaluation and slowing growth of AI-driven companies. The Wells Fargo report emphasizes that Oracle’s exposure to undervalued AI cloud business will be the key driving force supporting its bullish stock price forecast. As of December 21, 2025, Oracle's stock closed at around $190. Wells Fargo’s latest estimates suggest a potential target price of $285.

Analysis points out that if the application of AI accelerates, it will mean a significant rebound opportunity for the stock, which stands in stark contrast to the prevailing cautious sentiment in the market. AI Pessimism “Overdone” and Undervalued Cloud Assets Wells Fargo’s analysis elaborates on the bullish logic, with the core view being that Oracle’s robust cloud infrastructure and AI integration are undervalued assets in the market. According to the CNBC-cited report, Oracle's recent expansion in AI data centers and partnerships gives it an advantageous position in the competition with peers. Analysts believe that the current market pessimism towards the AI sector mainly stems from the scrutiny of tech giants' high valuations, but this obscures the actual growth potential of companies like Oracle. Wells Fargo’s perspective challenges this mainstream narrative, suggesting that as Oracle’s autonomous database technology captures more market share, its fundamentals are stronger than market expectations. The report notes: Global AI investment will reach $200 billion by 2025, and Oracle is benefiting from this through its technological arrangements. This fundamental improvement has not yet been fully reflected in the stock price. Risk Disclosure and Disclaimer The market carries risks; investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial status, or needs of any individual user. Users should consider whether any opinions, viewpoints, or conclusions presented herein suit their particular situation. Any investment decisions made based on this article are at one’s own risk. ```