11:43 AM EDT, 04/28/2026 (MT Newswires) -- Oracle (ORCL) is set to outperform despite a report about OpenAI weighing on the tech sector, Wedbush said in a note Tuesday.

Oracle's significant backlog, including a $300 million cloud contract with OpenAI over the next five years, is expected to generate about $30 billion in revenue, analysts wrote.

Oracle is capable of completing its $50 billion capital raise, and the pullback in shares represent a buying opportunity with OpenAI set to go public by year-end, the brokerage said.

Concerns around OpenAI after it reportedly missed revenue and user targets are overblown, with the company having adequate capital to fulfill its compute capacity needs over at least the next three years, improving the odds of Oracle fulfilling its backlog in the near-term, according to the note.

Wedbush reiterated its outperform rating on the stock and price target of $225 per share.

Shares of Oracle were down more than 4% in Tuesday trading.

Price: 165.77, Change: -7.19, Percent Change: -4.16