On January 1, Ryan Detrick of Carson Group appeared on CNBC’s ‘Closing Bell Overtime’ to talk about his bullish outlook for 2026. He noted that for five consecutive years, the final trading day of the year closed lower, which was a streak that had never happened before in history. While acknowledging that US valuations appear stretched, Detrick pointed out that similar concerns existed 12 months prior. He defined the current environment as a global bull market and noted that international regions, such as Europe and emerging markets, remain attractive. Emerging markets, in particular, are currently trading at levels seen during their 2007 peak, which suggests significant room for potential upside compared to the more expensive US market.
Detrick also explained that 2025 marked a turning point where international markets, specifically Europe, outperformed the US by nearly 40%, which is the largest margin in two decades. He believes that this global re-acceleration is a real recovery and advised portfolio managers that while US large-cap tech has dominated for years, the current global breakout suggests that a diversified international approach is now vital. In terms of asset allocation for 2026, Detrick remains optimistic despite the wild ride seen in certain sectors. He emphasized that the current US bull market is entering its fourth year. Historically, once a bull market reaches this age, the average remaining duration is eight years, with the shortest being five. This historical precedent gives him confidence that the bull market is alive and well.
That being said, we’re here with a list of the 14 most buzzing stocks to invest in according to hedge funds.
Our Methodology
We sifted through the Yahoo stock screener to compile a list of stocks that had high average three-month volumes (at least 25 million). We then selected 14 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 6.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14 Most Buzzing Stocks to Invest In According to Hedge Funds
14. Bitmine Immersion Technologies Inc. (NYSEAMERICAN:BMNR)
Average Volume (3-Month): 44.494 million
Number of Hedge Fund Holders: 20
Bitmine Immersion Technologies Inc. (NYSEAMERICAN:BMNR) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Cantor Fitzgerald analyst Brett Knoblauch initiated coverage of Bitmine Immersion with an Overweight rating and $39 price target. Knoblauch highlighted the company’s massive scale in digital asset treasuries as a primary competitive edge and noted that its status as a top capital raiser drives superior stock liquidity and a robust ETH accumulation flywheel. Cantor Fitzgerald views the current entry point as offering an attractive risk/reward profile for investors.
In FQ4 2025, the company reported a substantial net income of $328.2 million. This performance resulted in a fully diluted EPS of $13.39. As the world’s largest Ethereum/ETH treasury, the company remains focused on long-term crypto accumulation and infrastructure development, supported by a high-profile group of institutional investors, including Cathie Wood’s ARK, Founders Fund, Bill Miller III, Pantera, Kraken, and personal investor Thomas ‘Tom’ Lee.
A central pillar of BitMine’s 2026 strategy is the launch of the Made-in-America Validator Network/MAVAN. This dedicated staking infrastructure is designed to provide safe, high-yield staking for the company’s ETH assets. Bitmine Immersion Technologies Inc. (NYSEAMERICAN:BMNR) has already initiated a pilot program with three top staking providers to test performance and service quality. Following these tests, the company plans to scale MAVAN with world-class infrastructure partners, with full staking operations expected to go live in FQ1 2026.
Bitmine Immersion Technologies Inc. (NYSEAMERICAN:BMNR) operates as a blockchain technology company primarily in the US.
13. SoundHound AI Inc. (NASDAQ:SOUN)
Average Volume (3-Month): 32.586 million
Number of Hedge Fund Holders: 22
SoundHound AI Inc. (NASDAQ:SOUN) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Piper Sandler lowered the firm’s price target on SoundHound to $11 from $15, while keeping a Neutral rating on the shares. The firm updated its projections based on the latest 10-Q filings.
Earlier on December 11, Cantor Fitzgerald last night upgraded SoundHound to Overweight from Neutral with a price target of $15, which was brought up from $13. The firm suggested that investors capitalize on the stock’s recent price dip and noted that the company effectively executed its strategy of cross-selling and upselling AI voice services to existing clients. The firm maintained that SoundHound is a prime beneficiary of long-term growth in the conversational AI sector.
Additionally, a day before the Cantor Fitzgerald rating, SoundHound AI Inc. (NASDAQ:SOUN) announced a partnership with OpenTable to launch a fully conversational, in-vehicle voice AI reservations agent. This integration is part of SoundHound’s expanding in-car voice commerce platform and allows drivers and passengers to discover and book tables at over 60,000 restaurants worldwide using natural language commands. By connecting directly to OpenTable’s global network, the system can check real-time availability and secure bookings hands-free, eliminating the need for manual app navigation while driving.
SoundHound AI Inc. (NASDAQ:SOUN) develops independent voice AI solutions that enable businesses across automotive, TV, and IoT, and customer service industries to deliver high-quality conversational experiences to their customers in the US, Korea, France, Japan, Germany, and internationally.
12. Denison Mines Corp. (NYSEAMERICAN:DNN)
Average Volume (3-Month): 67.812 million
Number of Hedge Fund Holders: 35
Denison Mines Corp. (NYSEAMERICAN:DNN) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Canaccord raised the firm’s price target on Denison Mines to C$5 from C$4.40, while maintaining a Speculative Buy rating on the shares.
In other news, on December 17, Denison Mines announced the successful closing of a transaction with Skyharbour Resources Ltd. This deal involves the formation of four prospective exploration JVs using claims from Skyharbour’s Russell Lake Uranium Project. These properties are located directly adjacent to Denison’s flagship Wheeler River Project in the eastern Athabasca Basin of northern Saskatchewan.
The partnership is structured to use the technical expertise of both companies across specific land packages. Denison Mines Corp. (NYSEAMERICAN:DNN) will act as the operator for the Wheeler River Inliers (70% ownership) and Wheeler North (49% ownership) JVs. Conversely, Skyharbour will lead operations for the Getty East (30% Denison interest) and Russell Lake/RL (20% Denison interest) JVs. Under newly established Earn-In Option Agreements, Denison maintains the right to increase its stake in both Wheeler North and Getty East to as high as 70%.
This expansion coincides with major regulatory and operational milestones for Denison. In July 2025, the Province of Saskatchewan approved the Environmental Assessment for the Phoenix deposit, and in December 2025, the Canadian Nuclear Safety Commission concluded public hearings regarding federal approval and construction licenses. Additionally, Denison’s 22.5% interest in the McClean Lake JV saw the commencement of mining at the McClean North deposit in July 2025 using the innovative SABRE mining method.
Denison Mines Corp. (NYSEAMERICAN:DNN) acquires, explores, and develops uranium bearing properties in Canada.
11. Rivian Automotive Inc. (NASDAQ:RIVN)
Average Volume (3-Month): 46.977 million
Number of Hedge Fund Holders: 36
Rivian Automotive Inc. (NASDAQ:RIVN) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Goldman Sachs raised the firm’s price target on Rivian to $18 from $16 with a Neutral rating on the shares. The firm highlighted that Rivian’s Q4 2025 deliveries reached 9.7K, which was a slight miss compared to the firm’s estimates. This was also a 26% sequential decline and a 31% drop year-over-year. Goldman Sachs now expects investor attention to center on the R2 platform and the company’s progress in autonomous driving.
In other news, on December 11, Rivian unveiled a shift toward complete vertical integration of its self-driving technology. The centerpiece of this announcement was the Rivian Autonomy Processor/RAP1, which is a custom-built 5nm chip designed to handle vision-centric physical AI. The proprietary silicon integrates processing and memory into a single module, using RivLink low-latency interconnect technology to allow for scalable processing power.
The custom hardware powers the third-generation Autonomy Compute Module 3/ACM3, which boasts industry-leading specifications: 1,600 sparse INT8 TOPS (Trillion Operations Per Second) and the ability to process 5 billion pixels per second. To support this vision-heavy system, Rivian Automotive Inc. (NASDAQ:RIVN) will integrate LiDAR into its future R2 models to provide redundant 3D spatial data for complex edge case driving scenarios. This Gen 3 hardware suite is currently undergoing validation and is scheduled to begin shipping on R2 models at the end of 2026.
Rivian Automotive Inc. (NASDAQ:RIVN), together with its subsidiaries, designs, develops, manufactures, and sells EVs and accessories.
10. Vale (NYSE:VALE)
Average Volume (3-Month): 31.975 million
Number of Hedge Fund Holders: 37
Vale (NYSE:VALE) is one of the most buzzing stocks to invest in according to hedge funds. On December 23, Wells Fargo analyst Timna Tanners raised the firm’s price target on Vale to $13 from $12 and kept an Equal Weight rating on the shares. Wells Fargo suggests that supply-side bottlenecks could provide a floor for copper and aluminum prices through Q3 2026. The firm specifically highlighted that elevated energy costs and a shift toward copper-to-aluminum substitution are creating a particularly favorable environment for the aluminum industry.
On December 15, Morgan Stanley upgraded Vale (NYSE:VALE) to Overweight from Equal Weight with a price target of $15, which was brought up from $13. The firm expressed a preference for aluminum over copper while highlighting Vale as an increasingly attractive investment. The firm described Vale as an undervalued asset characterized by robust free cash flow. Even following the stock’s then-recent strong performance, Morgan Stanley maintained that the risk-reward profile remains compelling. This outlook is supported by Vale’s commitment to disciplined capital allocation, high operational standards within its core iron ore division, and promising growth prospects in the copper sector.
Furthermore, on December 8, Vale, Caterpillar, and Sotreq signed a landmark agreement to significantly expand the autonomous haul truck fleet within Vale’s Northern System, located in the Carajás region of Pará, Brazil. This five-year plan will gradually deploy autonomous technology across the Serra Norte and Serra Sul units through 2028. The expansion aims to modernize mining operations by integrating the Cat MineStar Command for hauling, reinforcing Vale’s shift toward smart mining and operational excellence. The agreement marks a major scale-up from the Northern System’s current fleet of 14 autonomous trucks, which have a 320-ton capacity. By 2028, the regional fleet is expected to grow to ~90 autonomous trucks, including larger models capable of carrying up to 400 tons.
Vale (NYSE: VALE), together with its subsidiaries, produces iron ore and nickel in Asia, the Americas, Europe, and worldwide. It operates through Iron Solutions and Energy Transition Materials segments.
9. Huntington Bancshares Inc. (NASDAQ:HBAN)
Average Volume (3-Month): 28.686 million
Number of Hedge Fund Holders: 42
Huntington Bancshares Inc. (NASDAQ:HBAN) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Barclays raised the firm’s price target on Huntington Bancshares to $20 from $19 and maintained an Equal Weight rating on the shares. Barclays revised its outlook for large-cap banks for 2026, adjusting both ratings and price targets. The firm remains bullish, predicting that the tailwinds fueling 2025’s double-digit earnings growth and market outperformance will continue to drive the sector in 2026.
On December 19, RBC Capital also raised the firm’s price target Huntington Bancshares Inc. (NASDAQ:HBAN) to $20 from $19 with an Outperform rating on the shares. This sentiment was posted as the firm highlighted the strategic potential of the recent Veritex and Cadence acquisitions. Management maintained a confident and consistent outlook, projecting peer-leading performance from the core business. RBC Capital also expects substantial contributions from the enlarged merger footprint.
On December 10, as well, Piper Sandler raised the price target on the company to $16 from $15 with an Underweight rating on the shares. Following the filing of Huntington Bancshares’ latest presentation slides for an upcoming industry conference, the bank’s core strategy remains rooted in organic growth. The firm emphasized its track record of seamless integrations, framing its recent acquisitions not as departures from its mission, but as springboards to accelerate future organic expansion.
Huntington Bancshares Inc. (NASDAQ:HBAN) operates as the bank holding company for The Huntington National Bank, which provides commercial, consumer, and mortgage banking services in the US.
8. Ford Motor Company (NYSE:F)
Average Volume (3-Month): 85.348 million
Number of Hedge Fund Holders: 44
Ford Motor Company (NYSE:F) is one of the most buzzing stocks to invest in according to hedge funds. On January 6, Ford Motor Company announced its Q4 2025 earnings report. Total vehicle sales for the full year 2025 rose 6% to 2,204,124 units, driving Ford’s annual market share up to 13.2%, which was a 0.6 percentage point increase. Q4 particularly had sales growing 2.7% and market share jumping 0.9 percentage points as the company used its power of choice strategy across gas, hybrid, and electric powertrains.
The F-Series secured its 49th consecutive year as America’s best-selling truck and its 44th year as the best-selling vehicle overall. Ford sold 828,832 F-Series trucks in 2025, which was an 8.3% increase year-over-year. Hybrids emerged as a primary growth engine, with Ford selling a record 228,072 hybrid vehicles in 2025, which was a 21.7% surge. In the SUV segment, the Explorer remained America’s best-selling three-row SUV with 222,706 sales, rising 14.7%, while the Bronco achieved a new record of 146,007 units, rising 33.7%.
Ford’s digital transformation also gained momentum through Ford Pro Intelligence, which saw paid software subscriptions grow 30% year-over-year to ~840,000 active users. On the consumer side, the BlueCruise hands-free highway driving system surpassed 8.5 million cumulative hours by year-end. Looking toward 2026, Ford Motor Company (NYSE:F) is expanding its lineup with the Explorer Tremor and the F-150 Lobo street truck, while preparing for a new midsize electric pickup in 2027.
Additionally, on December 22, Evercore ISI raised the firm’s price target on Ford to $14 from $12 and kept an In Line rating on the shares. The company’s positive outlook is rooted in a renewed focus on US hybrid and internal combustion vehicles.
Ford Motor Company (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans, and cars, and Lincoln luxury vehicles worldwide.
7. TeraWulf Inc. (NASDAQ:WULF)
Average Volume (3-Month): 39.014 million
Number of Hedge Fund Holders: 47
TeraWulf Inc. (NASDAQ:WULF) is one of the most buzzing stocks to invest in according to hedge funds. On December 31, Keefe Bruyette analyst Stephen Glagola upgraded TeraWulf to Outperform from Market Perform with a price target of $24, up from $9.50, due to a significant market underestimation of the company’s pivot from Bitcoin mining to HPC. The firm projects that TeraWulf’s existing lease agreements will drive a massive 505% CAGR in EBITDA through 2027. Glagola maintains that the recent sector-wide sell-off has created a compelling risk/reward asymmetry, as HPC is set to generate over two-thirds of TeraWulf’s revenue by 2026, rendering legacy mining largely immaterial by 2027.
In other news, on December 18, TeraWulf Inc. (NASDAQ:WULF) and Fluidstack announced the successful pricing of project-level financing for their 168 MW HPC joint venture. Located at the Abernathy, Texas campus, the project will develop a next-gen, liquid-cooled AI data center with a gross power capacity of 240 MW (168 MW of critical IT load). The facility is designed to serve a global hyperscale AI platform and remains on track for commissioning in H2 2026.
The financial structure of the deal is notably robust, benefiting from an investment-grade credit profile. Google has provided approximately $1.3 billion in long-term lease-backing commitments through Fluidstack’s platform to support the project debt. This credit enhancement was a critical factor in the successful pricing, as it allows for more efficient capital formation. TeraWulf maintains a 51% majority ownership in the JV, which is projected to generate ~$9.5 billion in contracted revenue over a 25-year term. As of early 2026, TeraWulf’s total contracted HPC platform exceeds 510 MW, and the company plans to deploy an additional 250 MW to 500 MW of capacity annually.
TeraWulf Inc. (NASDAQ:WULF), together with its subsidiaries, operates as a digital asset technology company in the US.
6. UiPath Inc. (NYSE:PATH)
Average Volume (3-Month): 26.578 million
Number of Hedge Fund Holders: 48
UiPath Inc. (NYSE:PATH) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, RBC Capital lowered the firm’s price target on UiPath to $17 from $19, while keeping a Sector Perform rating on the shares. The firm suggested that 2026 will be a year of divergence for the software sector. Companies strategically positioned for enterprise AI adoption are expected to see clear tailwinds, while less prepared firms may struggle under the AI is the death of software narrative. Although management teams are issuing conservative early 2026 guidance, the firm noted that enterprise spending is stabilizing and GenAI is actively fueling innovation.
Earlier on December 10, RBC Capital analyst Matthew Hedberg raised the firm’s price target on UiPath Inc. (NYSE:PATH) to $19 from $16, while maintaining a Sector Perform rating on the shares. RBC Capital expressed growing confidence in TeraWulf following a solid Q3 2025 earnings report and noted that the results pointed toward a stabilization in net new annual recurring revenue.
While the firm emphasized that future execution remains critical, Hedberg was encouraged by improving profitability and the potential for these positive business trends to persist. RBC Capital concluded that if UiPath Inc. (NYSE:PATH) can maintain this steady operational momentum, the stock is well-positioned for further upside.
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers a range of robotic process automation/RPA solutions primarily in the US, Romania, the UK, the Netherlands, and internationally.
5. Intel Corporation (NASDAQ: INTC)
Average Volume (3-Month): 89.299 million
Number of Hedge Fund Holders: 81
Intel Corporation (NASDAQ:INTC) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Melius Research upgraded Intel to Buy from Hold with a $50 price target. The firm dismissed recent reports regarding Nvidia’s dissatisfaction with the Intel 18A process node as stale information. Instead, the firm sees a good chance that both Nvidia and Apple will seriously evaluate the Intel 14A node for production by the 2028–2029 timeframe.
The potential shift could be a significant tailwind for the stock throughout 2026, supporting book value. Furthermore, Melius Research highlighted the strong industry and political standing of Intel CEO Lip-Bu Tan and noted his high regard among key figures, including President Trump, Secretary Lutnick, Jensen Huang, and Lisa Su.
On the same day, Intel Corporation (NASDAQ:INTC) unveiled its Core Ultra Series 3 processors (codenamed “Panther Lake”) at CES in Las Vegas. This launch marks a historic milestone as the first compute platform built on the Intel 18A process node, the most advanced semiconductor technology currently manufactured in the US. Designed to power the next generation of AI PCs, the Series 3 lineup will be featured in over 200 vehicle and laptop designs from global partners, representing Intel’s most broadly adopted AI platform to date.
Consumer availability begins with pre-orders on January 6, with the first laptops scheduled for global release on January 27. Additional laptop designs will continue to roll out through the first half of the year, while edge and industrial systems powered by Intel Core Ultra Series 3 are expected to hit the market starting in Q2 2026.
Intel Corporation (NASDAQ:INTC) designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Intel Products, Intel Foundry, and All Other segments.
4. Pfizer Inc. (NYSE:PFE)
Average Volume (3-Month): 63.601 million
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the most buzzing stocks to invest in according to hedge funds. Earlier on December 17, Astellas Pharma and Pfizer Inc. (NYSE:PFE) announced positive topline results from the Phase 3 EV-304 clinical trial (also called KEYNOTE-B15). This study showed that the combination of PADCEV (enfortumab vedotin) and Keytruda (pembrolizumab) improves survival outcomes for patients with muscle-invasive bladder cancer/MIBC who are eligible for cisplatin-based chemotherapy.
Used as a perioperative treatment, meaning both before and after surgery, this regimen is the first platinum-free therapy to show significant improvements in both Event-Free Survival and Overall Survival compared to the current standard of care, which relies on gemcitabine and cisplatin chemotherapy. The trial also met a key secondary endpoint by showing a significant improvement in the pathologic complete response rate.
Currently, bladder cancer is the ninth most common cancer globally, with over 614,000 annual diagnoses, including 85,000 in the US. ~30% of these cases are classified as MIBC. While the standard treatment has long been cisplatin-based chemotherapy followed by surgery, ~50% of patients still experience disease recurrence or progression to metastatic disease within 3 years.
PADCEV is a first-in-class antibody-drug conjugate that targets Nectin-4, which is a protein highly expressed in bladder cancer cells. It works by delivering a cell-killing agent, monomethyl auristatin E, directly into the cancer cells to trigger apoptosis.
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the US and internationally.
3. Bank of America Corporation (NYSE:BAC)
Average Volume (3-Month): 36.059 million
Number of Hedge Fund Holders: 111
Bank of America Corporation (NYSE:BAC) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Barclays raised the firm’s price target on Bank of America to $71 from $59 while maintaining an Overweight rating on the shares. As part of its 2026 sector forecast, Barclays updated its ratings and price targets for large-cap banks. The firm anticipates that the momentum behind 2025’s double-digit earnings growth and superior stock performance will persist throughout 2026.
On December 18, Truist also raised the firm’s price target on Bank of America Corporation (NYSE:BAC) to $58 from $56 and keeps a Buy rating on the shares. This sentiment was posted as Truist broadly updated the firm’s financial model following recent management conference appearances. The firm raised the FY27 EPS estimate to reflect stronger revenue growth driven by higher fees, though these gains are partially tempered by projected increases in expenses and tax rates.
However, Morgan Stanley cut its price target for Bank of America from $70 to $68 on December 12 while maintaining an Overweight rating. This adjustment accompanied a downward revision of earnings expectations, specifically cutting the Q4 EPS estimate by 4% and the 2027 forecast by 2.5%. These changes are driven by an anticipation of softer investment banking fees and increased operating expenses, though the impact is partially mitigated by a stronger outlook for equities trading revenue.
Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
2. Tesla Inc. (NASDAQ:TSLA)
Average Volume (3-Month): 80.581 million
Number of Hedge Fund Holders: 120
Tesla Inc. (NASDAQ:TSLA) is one of the most buzzing stocks to invest in according to hedge funds. On January 2, Truist analyst William Stein lowered the firm’s price target on Tesla to $439 from $444 with a Hold rating on the shares. Following the company’s Q4 2025 announcement of 418,000 deliveries, Truist characterized the subsequent stock recovery as a better-than-feared reaction from investors. While vehicle deliveries lagged, energy storage deployments exceeded expectations.
However, Truist maintains that the core investment thesis should shift toward AI initiatives, specifically Full Self-Driving/FSD. The firm argues that Tesla’s long-term cash flow and stock valuation are now driven more by these AI advancements than by traditional automotive delivery metrics.
On this day, Tesla Inc. (NASDAQ:TSLA) reported record-breaking performance for Q4 2025, highlighted by the deployment of 14.2 GWh of energy storage products. In terms of vehicle production and logistics, the company produced a total of 434,358 vehicles and delivered 418,227 units during the quarter. The vast majority of this volume was driven by the Model 3/Y line, which accounted for 422,652 units produced and 406,585 delivered. Other models contributed 11,706 in production and 11,642 in deliveries. Notably, 3% of total Q4 deliveries were subject to operating lease accounting.
The full-year results for 2025 show substantial scale across both automotive and energy sectors. Tesla produced a cumulative 1,654,667 vehicles and delivered 1,636,129 units throughout the year. The Model 3/Y remained the primary growth driver with 1,600,767 units produced and 1,585,279 delivered, while other models totaled 53,900 in production and 50,850 in deliveries. Additionally, the company’s energy storage business achieved a total of 46.7 GWh in deployments for the entire year.
Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells EVs, and energy generation and storage systems in the US, China, and internationally through two segments: Automotive and Energy Generation & Storage.
1. Oracle Corporation (NYSE:ORCL)
Average Volume (3-Month): 25.662 million
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, RBC Capital analyst Rishi Jaluria lowered the firm’s price target on Oracle to $195 from $250 and kept a Sector Perform rating on the shares. The firm suggested that 2026 will serve as a turning point where the benefits of AI become increasingly visible for companies prepared for enterprise adoption. Enterprise spending is stabilizing and showing signs of recovery in certain sectors, fueled by GenAI innovation. Despite this progress, RBC Capital noted that management teams are maintaining a cautious stance in their early 2026 financial guidance.
Earlier on December 10, Oracle released its FQ2 2026 financial results, highlighted by a 13% year-over-year increase in total revenue to $16.1 billion. A primary driver of this growth was the cloud sector, which now accounts for half of the company’s total revenue. Specifically, total cloud revenue rose 33% to $8 billion, fueled by a 66% surge in cloud infrastructure/OCI and a 177% increase in GPU-related revenue. Within the cloud segment, database services grew by 30%, autonomous database revenue increased by 43%, and cloud applications reached $3.9 billion, up 11%.
Looking toward FQ3, Oracle Corporation (NYSE:ORCL) provided optimistic guidance. Total revenue is expected to grow between 16% and 18%, while cloud revenue is projected to increase by 37% to 41% in constant currency. Oracle’s comprehensive AI-integrated application suites will allow them to outperform peers experiencing a deceleration in the sector.
Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide
While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.
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