10 Best Cloud Stocks To Buy According to Hedge Funds

6. Oracle Corp (NYSE:ORCL)

Number of Hedge Fund Investors: 91

Oracle Corp (NYSE:ORCL) recently announced a $100 billion JV with SoftBank and OpenAI to fund the expansion of data centers in a bid to emerge as a big cloud player. ORCL currently has only a 5% share in this space, falling far behind AWS (40%) and Microsoft (16%). The expected capex should enable ORCL to generate $30-40 billion in revenue from cloud infrastructure sales, a 3-4 fold increase from its current sales of $10 billion.

Bloomberg Consensus estimates that the cloud business will outpace ORCL’s overall growth, with the earnings expectation already up by 0.2%. The firm has already made inroads in enabling countries like the UAE and Saudi Arabia to enhance their cloud adoption. There is also a plan to train 350,000 people in the Middle East that would enable governments and businesses to leverage cloud systems with AI capabilities. The investment in this region is expected to be 5 times higher in the next few years.