5 Best Cloud Stocks to Buy as Azure Growth Hits 40%

3. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 111

Oracle Corporation (NYSE:ORCL), featuring a short float of 1.83% and upside potential of 21.40%, earns a spot on our list of the best cloud stocks to buy as Azure growth hits 40%.

Analysts appear convinced that the market is misreading the company’s AI infrastructure story.

On May 13, 2026, Wedbush raised its price target on Oracle Corporation (NYSE:ORCL) to $275 from $225, keeping an “Outperform” rating, and said its confidence in Oracle’s strategic positioning within the AI infrastructure landscape had grown following recent checks.

The firm’s core argument is that investors are fixating on the optics of Oracle’s heavy, contract-backed capital spending cycle while underweighting the demand visibility sitting behind it. Wedbush added that its comfort with Oracle’s relationship with OpenAI is increasing and that fears surrounding the broader data center story remain overdone.

A day earlier, on May 12, 2026, Oppenheimer’s Brian Schwartz raised the firm’s price target to $235 from $210, also kept an “Outperform” rating, and reiterated Oracle Corporation (NYSE:ORCL) as the firm’s top pick.

Schwartz pointed to strong technology infrastructure spending visible in the recent quarterly results of Oracle’s largest customers, partners, and suppliers, along with a significant restructuring announced on March 31, as reasons to expect upside in Oracle’s fourth-quarter 2026 results. The firm also sees solid bookings growth ahead from OpenAI, Meta, Nvidia, federal government commitments, and Microsoft outsourcing lower-margin training workloads to Oracle Corporation (NYSE:ORCL).

That optimism follows a solid foundation laid in the latest quarter.

In March 2026, Oracle Corporation (NYSE:ORCL) reported third-quarter remaining performance obligations of $553 billion, up 325% year-over-year and ahead of estimates, reflecting the scale of AI contracts the company has secured.

Oracle Corporation (NYSE:ORCL) also raised its fiscal 2027 revenue forecast to $90 billion, above the $86.6 billion analyst consensus at the time.

Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas and was founded on June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.