10 Buzzing Tech and AI Stocks Everyone’s Talking About

3. Oracle Corp (NYSE:ORCL)

Number of Hedge Fund Investors: 124

Gil Luria, D.A. Davidson managing director, said in a latest program on CNBC that the market is overestimating the positive impact of Oracle’s deal with OpenAI. He said OpenAI may not be able to “pay their obligations.”

“One is if you go back to the transcripts from Oracle Corp (NYSE:ORCL) for the last few quarters, you’ll see that it’s not just the last deal from OpenAI that increased their backlog. It’s actually been several quarters where it’s really OpenAI that’s been driving all of this. Having that is the only thing that’s added value to Oracle Corp (NYSE:ORCL) is very risky. That’s not a customer that can pay all their obligations. They’re double, triple booking, maybe quadruple booking capacity. They will not be able to live to those obligations. So if you’re adding $400 billion of market cap to Oracle Corp (NYSE:ORCL) based on that, I think we should revisit the math.”

Why are some analysts reluctant about the Oracle-OpenAI deal? OpenAI is expected to burn about $115 billion over the next four years and is not projected to be profitable until 2030. Even after Nvidia’s latest $100 billion investment by Nvidia,  OpenAI will likely need to raise over $200 billion in total funding to cover its commitments. Some analysts believe Oracle may need to borrow tens of billions to build enough data centers for the deal.

ORCL is up 70% so far this year, and its P/E (TTM) is about 80% higher than the sector median of 24.4, according to data from SeekingAlpha.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

Software database company Oracle Corporation’s (NYSE:ORCL) quarterly results surprised to the upside, and the company ended the quarter by announcing a massive cloud deal that could generate up to $30 billion in annual revenue over the next few years. All in, shares re rated over 50% during the quarter. The company remains early in its accelerating growth inflection and is benefitting from a number of tailwinds across cloud, database and applications.