10 AI Stocks Making Waves on Wall Street

6. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 97

Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks Making Waves on Wall Street. On June 30, Stifel upgraded the stock to “Buy” from hold and raised its price target to $250 from $180. The firm said in its upgrade of Oracle that it sees cloud acceleration. Analyst Brad Reback quoted the company’s recent dramatic increase in capital expenditure and RPO (Remaining Performance Obligation) gains, which back growth expectations of the management for the company’s Cloud Infrastructure and SaaS-Apps businesses. These gains should generate accelerating revenue increases in the coming years, the firm noted.

Even though the higher capital spending will lead to additional near-term gross-margin compression, the analyst added that there is “no question this management team is extremely adept at managing expenses.”

They believe that sustainable Cloud growth and operating expense discipline should allow Oracle to overcome the revenue mix shift headwinds and support accelerating EPS growth in FY27 and beyond.

“While Oracle continues to benefit from escalating Infrastructure demand, we remain more cautious due to FCF implications given the company’s need for significant capital investment to sustain this growth.”