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Analysts See Oracle (ORCL) as Top Gen AI Play in Large-Cap Software Market

Oracle Corporation (NYSE:ORCL) is one of the Top AI Stocks in the Spotlight on Wall StreetOn September 26, Bernstein analyst Mark Moerdler reiterated its Buy rating on the stock and raised its associated price target to $364.00 (from $363.00).

According to the firm, Oracle’s updated guidance reflects an increase in revenue, with expectations of $144 billion in OCI revenue by FY30. Oracle’s strategic contracts, such as the $30 billion annual deal with OpenAI Cloud, are factors anticipated to boost financial growth.

Oracle also holds the potential to expand considerably over the next 5 to 10 years. It must execute its strategies effectively to succeed, but overall the long-term prospects for investors are considerable.

Oracle’s investment appeal is further enhanced by its position as a key player in the Gen AI sector within the large-cap software market.

Oracle (ORCL $364, Outperform): After updating our long view estimates to incorporate management’s guidance, we expect Oracle’s growth to accelerate for the next few years; revenue and operating profit growth will accelerate and once growth slows FCF margins will rebound and the value created for investors will be substantial. Looking 5–10 years out, Oracle should be many times larger on most factors investors care about. While management has to execute very well, the upside opportunity for investors is substantial. We slightly tweaked our estimates and raised our P/FE multiple by 0.5x. We strongly reiterate out Outperform rating, especially for those with a longer time horizon. Oracle is now the most visible way of investing in Gen AI success within the large cap software market. That said, there could be episodes where results could deviate from our expectations, and could provide good entry points.”

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

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.

READ NEXT:  10 AI Stocks on Market Radar and 10 Buzzing AI Stocks on Wall Street

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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