We recently published a list of Top 9 AI Stocks to Watch Amid DeepSeek Frenzy. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against other top AI stocks to watch amid DeepSeek frenzy.
DeepSeek has sparked a frenzy for Chinese stocks with exposure to artificial intelligence innovations. While the focus in the past was on US tech giants, there is a realization that Chinese companies could be at par or even ahead amid the AI boom.
The renewed focus on Chinese AI investment comes as Grandview Research projects the country’s artificial intelligence market to reach $206 billion by 2030 while growing at a compound annual growth rate of 44%. Amid the expected growth, investors have started jostling for investment opportunities with Chinese chipmakers, software designers, and even data center operators.
“DeepSeek’s breakthrough shows Chinese engineers are creative and capable of inventions that can compete with Silicon Valley,” said China Europe Capital Chairman Abraham Zhang. “It has also stirred nationalistic fever in capital markets.”
Analysts at Goldman Sachs have already warned that there is a possibility of Chinese breakthroughs in artificial intelligence materially altering the stock market trajectory. The investment bank has already reiterated that the revolutionary technology will result in enhanced efficiency that could bolster earnings by up to 2% for Chinese equities. The firm also predicts brighter growth prospects that could lead to a 20% valuation uplift for Chinese firms.
Even as Chinese investors rush into Chinese stocks, US stocks remain king amid the artificial intelligence race. Companies likely to benefit from low-cost AI models, as shown by DeepSeek, have rallied significantly ever since the Chinese startup rattled Wall Street.
According to analysts at JPMorgan, artificial intelligence should continue to drive economic and market outcomes in the US. Nevertheless, the analysts insist that stiff competition between China and the US will result in winners and losers. Therefore, analysts are warning that the concentration of the US stock market in mega tech names could pose significant risks to investors in 2025.
Nevertheless, AI opportunities are not a monolith, as increased competition and efficiency lead to increased consumption of resources.
“We encourage investors to look for opportunity while maintaining an overall portfolio that is resilient to the potential shocks that could occur. Some ways to ensure portfolio resilience could include checking in on your overall plan, proper diversification, a consistent approach to rebalancing and a reminder that stock market volatility is normal (the average year sees a nearly 15% peak to trough decline,” said JPMorgan in a note to investors.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Oracle Corporation (NYSE:ORCL) is a technology company that offers products and services that address enterprise information technology environments. On February 6th, the company confirmed embedding AI capabilities into its Human Capital Management Software. The integration is part of the software giant efforts to optimize workplace productivity and unlock new growth opportunities.
Oracle Corporation’s (NYSE:ORCL) new AI solution can respond to employees’ inquiries from all aspects of their jobs. It will also help employees become more productive by providing quick answers to a wide range of questions, allowing them to concentrate more on the core mission of their work. Similar to ChatGPT, the AI tool has human-like conversations and replies with accurate information that participating businesses give Oracle. According to Gartner research, these AI agents are a component of Oracle Fusion Cloud Human Capital Management, a cloud-based HR solution that has dominated the market for ten years.
Overall, ORCL ranks 2nd on our list of top AI stocks to watch amid DeepSeek frenzy. While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.