Jim Cramer’s 22 Stock Calls Including Meta, NVIDIA, and AI Opportunities in the Neocloud Space

13. Oracle Corporation (NYSE:ORCL)

Oracle Corporation (NYSE:ORCL) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer highlighted the future valuation of the company according to some analysts, as he said:

The business is now getting crowded, which is why tonight I want to explain the differences between the major neocloud outfits. You hear about them all the time; let’s learn about them. The first bucket is the major players. We can skip over the old guard hyperscalers: AWS, Google, Microsoft, because we’re already familiar with them. I mentioned that Meta Platforms is wisely using its spend to go well beyond that current usage. I regard that as found money. So let’s go straight to the new AI age hyperscalers like Oracle, like CoreWeave, like Nebius, and maybe a few other private companies.

Now, we know Oracle’s been getting killed lately, but it has the biggest market cap in this group. It’s one of the only companies that can raise the type of capital needed to capitalize on this new type of market for premium short-term AI scale rentals. It’s a very expensive proposition. As my colleague David Faber said this morning on Squawk on the Street, some analysts are expecting Oracle can earn more than $15 per share in 2029, nearly $20 per share in 2030. Now, if the company can hit those numbers, that means it’s now trading at just over seven times 2030 earnings. Jeez, that’s cheap… My head picked up when I heard those numbers.

Now, maybe founder and chairman Larry Ellison can take advantage of the compute shortage and sign a premium deal with Anthropic like Elon Musk did, sending his stock soaring. Even though Oracle stock is now back below where it was when we learned about its massive OpenAI deal last September, it’s tough to bet against these guys. Big opportunity, but Oracle also has the most to lose in terms of market cap even after the hideous decline.

Oracle Corporation (NYSE:ORCL) provides cloud and on-premises software, databases, and IT infrastructure to help businesses manage operations.