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Oppenheimer Raises Oracle (ORCL) to Outperform, Sees Strong Long-Term EPS Growth

Oracle Corporation (NYSE:ORCL) is included among the 14 Best GARP Stocks to Buy According to Analysts.

On February 25, Oppenheimer upgraded Oracle Corporation (NYSE:ORCL) to Outperform from Perform and set a price target of $185. The firm said the call may be early, as it will take time for Oracle to show financial results from its shift toward a more capital-intensive business model. Oppenheimer noted that the stock’s valuation multiples have fallen by more than half since September. At current levels, the firm sees a favorable risk and reward balance. It also said Oracle remains a strong EPS compounder and is positioned to benefit from AI as sentiment improves and risks become clearer.

On February 1, Oracle said it expects to raise $45 billion to $50 billion in 2026 to expand its cloud infrastructure capacity. The company, chaired by Larry Ellison, plans to use a mix of debt and equity financing to meet this goal. Oracle expects to raise about half of the funding through equity-linked and common equity issuances. This includes mandatory convertible preferred securities and a new at-the-market equity program worth up to $20 billion. The company plans to raise the remaining amount through senior unsecured bond offerings early in 2026.

Investors have closely followed Oracle’s AI infrastructure expansion in recent weeks. The company’s debt levels have increased, and its future growth is becoming more closely tied to OpenAI. OpenAI is not profitable and has not provided details on how it plans to fund its infrastructure expansion.

Oracle Corporation (NYSE:ORCL) provides integrated software applications and secure cloud infrastructure through Oracle Cloud. The company operates across three main segments: cloud and license, hardware, and services.

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.

READ NEXT: 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds and 14 Best Affordable Dividend Stocks to Buy According to Analysts

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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:

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