We recently compiled a list of the 14 Best American Tech Stocks To Buy Now. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against the other American tech stocks.
American stocks moved up a bit on Monday, April 14 as investors focused on news about tech companies getting a break from President Trump’s tariffs. The S&P 500 rose by 0.8%, the tech-heavy Nasdaq rose by 0.6%, and the Dow Jones Industrial Average increased by about 0.7%.
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In recent days, President Trump and his advisers have given mixed signals on the future of tariffs on China and on specific industries. Over the weekend, big American tech companies scored a victory when it was revealed that the US had not put tariffs on smartphones, computers, and other consumer electronics.
However, on Sunday, US Commerce Secretary Howard Lutnick stated that these electronics would soon be covered under new tariffs, which would be different from those imposed on specific countries. President Trump also posted on social media that there would be “no exception” for these products. He also said that the government is looking at semiconductors and the entire electronics supply chain in the upcoming National Security Tariff Investigations.
Last week was the best week for the major indexes since at least 2023. However, with all this uncertainty, Wall Street is getting ready for another week of potential tariff-fueled ups and downs.
Methodology
To compile our list of the 14 best American tech stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American technology companies. We sorted our results based on market capitalization and picked the top 30 American stocks. Next, we focused on the 14 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 14 best American tech stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 105
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology and software company that offers a wide range of business-oriented products and services including Oracle Database, a relational database management system. The company offers one of the industry’s broadest and deepest suites of AI-powered cloud applications. Oracle Corporation (NYSE:ORCL) ranks among the best American stocks to buy right now.
On April 3, TD Cowen maintained a “Buy” rating on Oracle Corporation (NYSE:ORCL) with a price target of $210. This decision follows a recent visit by analysts to the corporation’s data center in Salt Lake City and a detailed briefing on the company’s cloud infrastructure and AI strategy. Oracle Corporation’s (NYSE:ORCL) management highlighted strong demand for AI, which continues to exceed supply, and also shared plans to expand the company’s GPU cluster capabilities from 65,000 to 131,000 by 2025. The company’s infrastructure is efficient and flexible as it is designed to seamlessly transition between AI training and inference workloads. Analysts believe that Oracle Cloud Infrastructure (OCI) is experiencing a period of ultra growth. In fiscal 2025 Q3, OCI reached annualized revenues of $10.6 billion, marking a 57% year-over-year growth in OCI consumption and Cloud Remaining Performance Obligations (RPO) growing over 90% year-over-year. Additionally, the growth in backlog, outpacing consumption, indicates future growth in OCI services. Over the past year, Oracle Corporation (NYSE:ORCL) has expanded its number of OCI customer-facing regions to 101 from 69, which is an increase of 46% and the corporation has a total of 176 live and planned regions. This positions it favorably against competitors like AWS, which has 36 regions, and Azure, which has over 60 regions. TD Cowen noted that Oracle Corporation (NYSE:ORCL) is positioned uniquely thanks to its small footprint capabilities and Dedicated Cloud offerings, which allow it to meet different market demands compared to other leading hyperscalers.
Overall, ORCL ranks 12th on our list of the best American tech stocks to buy now. While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.