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Oracle Corp shares slipped 1.4% to around $160 on Thursday, even as Wedbush analysts pointed to the company’s latest outlook as an early sign that enterprise software vendors are beginning to demonstrate tangible returns from artificial intelligence investments.
Wedbush said Oracle delivered stronger-than-expected results and raised its fiscal 2026 revenue guidance to roughly $67 billion. The analysts viewed the update as signaling the start of meaningful AI-related monetization.
The firm described the move as an important “first step” for the software industry in countering what it calls the “AI Ghost Trade,” a market narrative suggesting generative AI platforms could reduce demand for traditional enterprise software.
Investors have been cautious about Oracle’s spending on data center expansion to support AI workloads. Wedbush argued that the company’s performance suggests those investments may soon translate into revenue growth.
The analysts added that the market appears to be “baking in a worst-case scenario” for software companies, a view they characterized as “extremely overblown.”
Concerns have intensified as AI developers such as Anthropic and OpenAI release increasingly capable tools designed to automate complex tasks. That progress has fueled speculation that enterprise technology budgets could shift toward AI initiatives at the expense of conventional software.
Wedbush argued that this scenario underestimates the complexity of modern corporate technology environments. Enterprise systems, the firm said, rely on extensive layers of data infrastructure, security frameworks, and operational workflows that are difficult to replace.
“The fictional concept being debated in this market is that enterprise software and cybersecurity will not be needed by enterprises in the future,” the analysts wrote, referring to claims that companies could sharply reduce IT spending by relying primarily on AI tools.
“While this sounds like a good thesis on paper or on a whiteboard, the reality is dramatically different,” they added.
Based on industry checks across the AI landscape, Wedbush said many technology vendors are already embedding AI capabilities within their existing platforms. The firm said this dynamic is not fully reflected in current valuations.
Rather than replacing enterprise software, Wedbush expects AI systems and large language models to work alongside employees and established applications to improve productivity and operational efficiency.
Wedbush said the key question for investors is how quickly software providers can integrate AI-driven capabilities into their platforms and workflows.
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