Oracle's OpenAI Ties Could Drive $60 Billion Revenue

Oracle ORCL may be sitting on a much bigger AI growth story than the market is giving it credit for, and Wells Fargo thinks recent worries are missing the point.

In a note to clients, analyst Michael Turrin said concerns about Oracle's exposure to OpenAI are being overstated. Digging into Oracle's remaining performance obligations, he sees a long runway of revenue tied to AI workloads. Wells Fargo estimates OpenAI-related revenue could reach about $10 billion in FY27, grow to $39 billion in FY28, climb to $65 billion in FY29, and approach $78 billion by FY30. Based on Oracle's margins, that could translate into OpenAI contributing roughly 2530% of earnings in FY28 through FY30.

Turrin also called the recent pullback in Oracle shares overdone, arguing that AI-driven cloud demand is still early and expanding. As more companies ramp AI usage, he believes Oracle is well positioned to quietly win share in cloud infrastructure. if this plays out, OpenAI could become one of Oracle's most important profit engines over the next few years.