10 Hot AI Stocks to Keep on Your Radar

7. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 124

Oracle Corporation (NYSE:ORCL) is one of the 10 Hot AI Stocks to Keep on Your Radar. On October 9, Baird initiated the stock as “Outperform,” stating that the company has “has positioned itself at the center of the most significant trend in the history of computing: AI.” “

“We are initiating coverage of Oracle with an Outperform rating and $365 price target.”

Analyst Rob Oliver highlighted the company’s robust positioning as an artificial intelligence growth story.

“We view ORCL as very well positioned to benefit from the accelerating spend on AI infrastructure, and the convergence of AI, data and use-cases that will emerge from the move from training to inference.”

Even outside of AI, Oracle enjoys a strong broader ecosystem of applications, data and networking. Owing to the company’s broad set of software offerings and applications, investors get to enjoy exposure across the broader computing ecosystem.

“The combination of resources it delivers — scaled infrastructure, database, networking, and applications — creates a virtuous circle that we believe can support a premium valuation and propel shares beyond the current infrastructure scarcity trade.”

The company’s revenue shift to cloud computing may help its revenue accelerate to over 20%.

“Core drivers of SaaS Applications and Infrastructure spending should support multiple years of above-average growth. Operating margins have remained ~40-45% despite accelerated investment cycle.”

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