Top 10 AI Stocks in the Spotlight on Wall Street

3. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 124

Oracle Corporation (NYSE:ORCL) is one of the Top 10 AI Stocks in the Spotlight on Wall Street. On 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.