Oracle CEO Dismisses ‘AI Bubble’ Fears, Says Real Value Still Untapped: Report

• According to a Reuters report, Oracle CEO Mike Sicilia emphasized there is real value in artificial intelligence as demand far outpaces supply.
• Bank of America pegs Oracle as the emerging ‘fourth hyperscaler’ in the market.
• Koyfin data shows Wall Street has an average price target of $345 for Oracle, implying a potential upside of 21% from current prices. 

Oracle (ORCL) CEO Mike Sicilia reportedly said on Tuesday that fears of an ‘AI bubble’ are overblown.

Speaking at the annual Future Investment Initiative (FII) summit in Riyadh, as cited by Reuters, Sicilia emphasized there is real value in artificial intelligence as demand far outpaces supply. ORCL’s stock traded flat in pre-market trade, with retail sentiment on Stocktwits around the company trending in ‘bearish’ territory

Oracle As The ‘Fourth Hyperscaler’

Oracle’s AI growth strategy has been fueled by major cloud agreements, including a multi-year partnership with OpenAI to develop Stargate AI. The company has also announced plans with AMD to stand up a publicly available AI supercluster with 50,000 AMD Instinct MI450 GPUs beginning in calendar Q3 2026.

Sicilia’s comments come amid an expanding AI landscape, where software giants are competing to provide both cloud infrastructure and application-level AI solutions. Analysts have tagged Oracle as the emerging ‘fourth hyperscaler’ with planned capital expenditure of over $300 billion by 2030, following Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOG/GOOGL).

According to a note by the Bank of America, cited by Benzinga, Oracle's accelerated investments in GPU infrastructure and data center capacity position it to compete better. The firm estimates Oracle's cumulative capital expenditures will exceed $300 billion by fiscal 2030. It has a ‘Buy’ rating on the stock with a price target of $368.

Koyfin data shows Wall Street has an average price target of $345 for Oracle, implying a potential upside of 21% from current prices. Out of the 43 analysts covering the stock, 30 give it ‘Buy’-equivalent ratings, while 12 recommend ‘Hold’, and only one analyst recommends selling the stock.

Read also: Bitcoin Holds Near $114K Ahead of Fed Rate Decision — SOL, XRP Edge Higher

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