Oracle is making progress towards becoming a primary infrastructure provider for artificial intelligence models, according to Wedbush Securities analyst Dan Ives. The research firm initiated the software giant with an outperform rating and a $225 rating, suggesting a 27.6% upside from the close of Thursday's close. Ives noted that Oracle is in "the early innings of a significant repositioninging" and has already signed deals with Silicon Valley giants such as OpenAI and Nvidia to help with enterprise AI. Despite concerns about Oracle's allocation of too much money to its infrastructure initiatives, Ives believes these fears are exaggerated. He also highlighted that Oracle has several funding sources that it can tap to continue its operations.