10 Buzzing AI Stocks on Market Radar

7. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 122

Oracle Corporation (NYSE:ORCL) is one of the 10 Buzzing AI Stocks on Market Radar. On February 3, Scotiabank analyst Pat Colville lowered the price target on the stock $220 (from $260), maintaining a “Sector Outperform” rating. Despite some bottlenecks, the firm has expressed its confidence in Oracle’s GPUaaS strength and capital access.

The firm highlighted Oracle’s recent $45-50 billion capital plan, which it believes will help remove some investor concerns about the company’s massive Oracle Cloud Infrastructure (OCI) buildout.

We shift down our EPS by 0.6% / 2.5% in F26E and F27E. Our analysis points to this capital giving Oracle runway through early F28, nonetheless lingering medium-term financing questions remain.

Several factors are needed for Oracle shares to perform better, Scotiabank noted, which includes execution on five large-scale data center projects currently under construction, confidence in OpenAI’s ability to meet its Oracle commitments, and whether OpenAI can show meaningful progress on a new foundation model.

The firm said that it likes Oracle’s positioning due to its technical expertise, capital raising ability, and independence from competing with its AI customers.

Many Oracle observers ‘want to see it to believe it,’ but we like Oracle’s positioning given its technical expertise in GPU-as-a-service, incredible ability to raise capital, and independence from competing with its AI customers. Oracle is in a tidy 4th spot in AI Accelerated Cloud, see pg 3–4, and well placed to capitalize on the supernova of demand for NeoCloud. We like the risk/reward.

Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.