Oracle Corp. (ORCL) Inks $1.65 billion Supply Agreement with Australian Modular Data Center Manufacturer

Oracle Corp. (NYSE:ORCL) is one of the 10 Best AI Stocks to Watch in May. In the past year, Oracle stock jumped 14.69% while declining 17.54% year-to-date. According to a report by the Australian Financial Review on April 27, Oracle signed a six-year supply agreement with Australian modular data center manufacturer Datapod worth approximately $1.65 billion to supply, deploy, and maintain AI infrastructure in the United States and Europe.

Scotiabank Lowers Oracle (ORCL) Price Objective, Sees Strength in AI-Accelerated Cloud

Based on ratings compiled by CNN from 45 analysts, 80% placed a Buy rating on Oracle, while 18% assigned a Hold rating. The stock has a median price target of $222.50, a 37.86% upside from the current price of $161.39.

According to a report by TheFly on April 28, Wedbush analyst Daniel Ives said the sell-off in Oracle shares is a “way overreaction” following a Wall Street Journal report that OpenAI recently missed its own targets for new users and revenue. The firm expressed a high level of confidence in Oracle’s ability to complete its $50B capital raise. It also believes the company has enough capital to fulfill its compute capacity needs over at least the next three years, noting that recent concerns around OpenAI are overblown. Currently, Wedbush has an Outperform rating on Oracle with a $225 price target.

Oracle Corp. (NYSE:ORCL) is a global provider of enterprise information technology solutions. It offers integrated application suites and secure, autonomous infrastructure in the Oracle Cloud.

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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