We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. Oracle Corp (NYSE:ORCL) is one of the stocks analysts were recently talking about.
Brent Thill from Jefferies recently said in a CNBC program that the timing of Oracle Corp (NYSE:ORCL) appointment of co-CEOs is right and the company is at the beginning of the AI wave. However, the analyst said having two CEOs usually doesn’t “work.”
“I think the real question becomes co-CEO roles don’t really work. Look at Salesforce, didn’t really work. Look at SAP, didn’t work. And so I think the real question investors are going to have, and you can hear them on the earnings call, they’re tripping over each other. You know, someone tries to talk and someone jumps in. I mean, you already see that just even in the conference.”
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Oracle recently promoted Clay Magouyrk and Mike Sicilia to co-CEOs. Safra Catz will serve as executive vice chair on the company board.
Thill, however, added that the two executives have different lines of expertise and overall, the appointments will be good for Oracle Corp (NYSE:ORCL).
“The team’s been together and they’ve been working together for well over a decade, all of them. So, this isn’t bringing someone new in and clearly I think the division lines of the CEOs are very different in terms of their focus areas. So, that’ll be good. While one’s clearly in one area of the kitchen, the other one’s in the other area. So, there shouldn’t be too much running into each other.”
Oracle shares recently fell after a report showed its Nvidia-related margins are not impressive. 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.
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.
While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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