10 Buzzing AI Stocks on Wall Street

4. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 124

Oracle Corporation (NYSE:ORCL) is one of the 10 Buzzing AI Stocks on Wall Street. On September 23, KeyBanc analyst Jackson Ader reiterated an Overweight rating and $350.00 price target on the stock.

Analyzing Oracle’s cloud infrastructure business, the firm has estimated that the Infrastructure-as-a-Service segment currently operates at a 42.4% non-GAAP gross margin.

However, it expects margins to decline as the business transitions towards GPU and AI-driven revenue. Despite adjustments to future projections, the firm maintains an Overweight rating on the stock.

“Penciling Out OCI’s Gross Margin Impact; With the emergence of GPU-based infrastructure businesses in our large cap coverage, we have been forced to become accustomed to a lower level of gross profitability. Based on some basic assumptions about Oracle’s businesses that are not tied to the cloud or GPUs, we believe the Infrastructure-as-a-Service business is currently running at a 42.4% non-GAAP gross margin currently, and while we expect each component of Oracle’s business to see efficiencies, the mix-shift toward more AI revenue is causing us to lower our estimates in the out years. We remain OW and reiterate our price target.”

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