10 Stock News You Should Not Miss as Tom Lee Reiterates Bullish Market Outlook Amid AI Catalysts

4. Oracle Corp (NYSE:ORCL)

Number of Hedge Fund Investors: 124

Joe Tigay from Equity Armor Investments said in a recent program on Schwab Network that he’s excited about the future of Oracle amid a new customer (TikTok US).

“They’re going to spend a lot of money to use Oracle Corp (NYSE:ORCL) cloud and Oracle is getting into the cloud business and now they got a new customer coming in. The US TikTok world is coming in, which is a very large customer, very important customer. So they’re going to be a player in the cloud game and I’m really excited about the potential for Oracle’s future. Really great action here. Now when it popped up to 345 right off of the news, I thought don’t go chasing here. Wait for it to come back here and we’ve come back a long way. Great price action last week. The market was just collapsing on Friday. Oracle hung in there very nicely. So I’m really, it’s really positive to see Oracle Corp (NYSE:ORCL) continue higher here and I think it could go back up and close to their recent highs of 340 plus.”

TikTok US algorithm will be operated in the United States and overseen by Oracle, CNN reported in September.

 Headwaters Capital Management stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:

“The catalyst for the September AI trade was Oracle Corporation’s (NYSE:ORCL) announcement of a 5-year contract with OpenAI for $300B (implying annual contract value of $60B) to host the company’s LLMs at Oracle data centers beginning in 2027. While the market has grown desensitized to these large headline numbers, it’s useful to step back and put these figures into context from the perspective of both the magnitude of spending and return on investment. It’s easiest to start with the amount of investment that five companies are collectively spending on AI. The table below outlines CAPEX spending by the five hyperscalers and compares it with the other 495 companies in the S&P 500. In 2026, these five hyperscaler companies are expected to spend $405B of CAPEX, nearly all of this related to AI infrastructure build.

In terms of the economics around this investment, details have emerged from the Oracle-OpenAI announcement that can help investors begin to untangle the economics of these contracts. It’s easiest to unpack this from the perspective of each of the players involved.

Committed to spending $60B annually with Oracle to host the Company’s LLMs. This annual expense represents the Company’s cost of goods sold for running LLMs. OpenAI is on track to generate $13B of revenue in 2025 (Source: Reuters and the Information). So just to cover the cost of operating their LLMs on this single contract, OpenAI needs revenue to grow 4.6x in 2 years, or a +115% CAGR over the next 2 years. This is a single contract for hosting services. OpenAI has numerous other hosting contracts, implying that the company needs revenue to significantly exceed $60B just to cover the company’s total cost of goods sold…” (Click here to read the full text)