20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

15) Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 91

Average Upside Potential: 29.6%

Oracle Corporation (NYSE:ORCL) remains a significant player in the AI space as it leverages artificial intelligence throughout its cloud infrastructure, applications, and analytics offerings. Its focus on AI and generative AI (GenAI) workloads continues to turn heads. The company has been successful in attracting notable customers like Meta and NVIDIA for its AI infrastructure, reflecting strong market adoption. Oracle Corporation (NYSE:ORCL) is well-placed to benefit from the growth of AI-related spending in the coming years.

With AI becoming more integral to enterprise operations, Oracle Corporation (NYSE:ORCL)’s strong position in database technology and growing cloud infrastructure offerings are expected to offer a competitive advantage. Its focus on developing AI-optimized hardware and software solutions is expected to lead to increased adoption of its cloud services and fuel revenue growth. While the company’s competitors treat AI as an add-on, Oracle Corporation (NYSE:ORCL) focuses on integrating AI deeply into its systems in a full-stack model that allows full operational workloads and chains of command which can include automation and enhanced decision-making.

In Q2 2025, Oracle Corporation (NYSE:ORCL) spent ~$4 billion on capital expenditures alone, demonstrating a 72% rise from the prior quarter, largely fueled by AI infrastructure investments. Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:

“Oracle Corporation (NYSE:ORCL) announced second-quarter results that exceeded consensus expectations, driven by growth in its cloud infrastructure business, which is benefiting from demand for AI applications. Investor sentiment was further bolstered by the company’s announcement of a new partnership with Amazon.”