We recently published a list of 10 AI Stocks Wall Street is Talking About. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against other AI stocks Wall Street is talking about.
Defiance ETFs CEO and CIO Sylvia Jablonski said in a recent program on Bloomberg that there are trillions of dollars of cash waiting on the sidelines ready to be invested in AI amid demand that is at an all-time high.
“There’s a biggest wealth transfer of our generation happening as we speak. And you know, Gen Z, you know, Gen Z, Millennial, Gen X kind of, you know, the younger traders are, this is where they’re allocating their funds to. And, you know, retail has definitely spoken, and institutions have definitely spoken, and they’re looking for that, that fourth industrial revolution allocation.”
Sylvia also talked about the relationship between quantum computing and AI and explained how this technology would improve AI systems:
“So chatbot AI is, you know, kind of version one. Quantum is taking everything to the next level. So you need quantum in order for it to be efficient. You need to process that data quickly. It will help, you know, essentially health care, cryptography, aerospace and defense, you know, blockchain technology. Anything you can think of will be better, too, with quantum supercomputing power.”
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For this article, we chose 10 AI stocks that are currently buzzing on the back of latest news and analyst ratings. With each stock we have mentioned the number of hedge fund investors. 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 Corp (NYSE:ORCL)
Number of Hedge Fund Investors: 91
Talking about Oracle Corporation (NYSE:ORCL) and its latest results during a program on Schwab Network, The Futurum Group’s chief market strategist Cory Johnson talked about an AI offering of the database company and said it beat AWS and Microsoft in this domain:
“Oracle is going to offer 30,000 Nvidia Blackwell chips—131,072 in total—to customers who use their infrastructure of service, their cloud services. This will allow them to have supercomputing performance through Oracle Corp (NYSE:ORCL). This is just unimaginable and something nobody else has.
Amazon Web Services doesn’t have it, Microsoft Azure doesn’t have it, and Google Cloud doesn’t have it. Oracle is really stepping up with a service they had been building for many years, and they now realize that AI is the killer app.”
Johnson was talking about Oracle’s announcement in September when the company revealed its zettascale cloud computing clusters accelerated by the NVIDIA Blackwell platform. The company at the time was Oracle Cloud Infrastructure (OCI) and was taking orders for the largest AI supercomputer in the cloud—available with up to 131,072 NVIDIA Blackwell GPUs.
Mar Vista Global Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q3 2024 investor letter:
“Oracle Corporation (NYSE:ORCL) is seeing revenue acceleration as it benefits from several years of investing in cloud-based solutions, which are now driving demand. The company is seeing broad-based demand for multiple of its cloud offerings, including its Fusion ERP Suite, its NetSuite offering and the Oracle Database. In addition to those anchor products, Oracle is also gaining traction with its OCI Gen 2 platform-as-a-service offering, which is winning mindshare from leading cloud customers, including Open AI, due to its favorable performance and cost metrics. This OCI Gen 2 solution is well-positioned to become a viable hyper scaler offering, furthered by Oracle’s recently announced partnerships with Microsoft Azure, Google Compute Platform, and Amazon’s AWS, which have all agreed to host Oracle’s flagship database in their respective hyper-scaler cloud environments. We believe this could support a third leg of growth for Oracle as its large installed base of database customers shift from on-premises to cloud deployments. As database customers migrate to a Cloud subscription model, Oracle could increase database software support revenues by 3-to-5 times. We continue to believe Oracle is well-positioned to grow intrinsic value strong double-digits over our investment horizon.”
Overall, ORCL ranks 7th on our list of AI stocks Wall Street is talking about. While we acknowledge the potential of ORCL, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.
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