We recently published a list of 15 Best Big Tech Stocks to Buy According to Analysts. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against other best big tech stocks to buy according to analysts.
Big Tech comprises some of the largest and most influential companies in the world, recognized for their sheer size, extensive customer base, and financial strength. Leading this group are five major companies that have been at the forefront of the tech sector economy, driving innovation and shaping consumer behavior. Over the years, Big Tech firms have benefited from the widespread adoption of smartphones and high-speed internet, increased demand for digital services, the rise of social media, strong demand for cloud computing, e-commerce, and digital advertising.
How Did the Big Tech Companies Become The Giants They are Today?
Beyond technological advancements, these companies have also benefited from several phenomena. The first is network effects—the more users a platform has, the more valuable it becomes. Other contributing factors include economies of scale as they expanded through acquisitions and the ease of scaling digital businesses globally; access to vast amounts of user data used to enhance products, target ads, and create highly personalized services; and their deep pockets (strong balance sheets) that enabled them to invest heavily in R&D, hire top talent, and operate during challenging times. This financial strength also allowed them to aggressively invest in AI and maintain a first-mover advantage. While challenges persist, we believe these companies will continue to innovate, expand their influence, and shape the future of technology.
In a recent interview with Yahoo Finance, Wedbush Securities’ Global Head of Technology Research, Dan Ives, expressed optimism about the future of Big Tech, stating:
“Microsoft’s $80 billion investment announcement and then Mark Zuckerberg’s announcement that his company plans to spend up to $65 billion on artificial intelligence is “the start of a massive build-out of AI Capex” that I think the Street is massively underestimating. And it’s the multiplier – every dollar spent on a NVIDIA chip, means $8 to $10 multiplier goes to the rest of tech – that’s bullish for tech. Of course, with Trump and Stargate, it just shows that fourth industrial revolution is just starting.”
While Big Tech typically refers to the top five mega-cap companies, we have prepared an extended list of 15 stocks that have made a significant impact on the tech landscape and are equally innovative and transformative as the top five.
Our Methodology
To list the 15 best Big Tech stocks to buy according to analysts, we screened companies with market capitalization of at least $100 billion and potential upside of at least 15%. Ultimately, the stocks were arranged in ascending order of their potential upside.
Note: All pricing data is as of market close on February 3.
At Insider Monkey we are obsessed with 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 Corporation (NYSE:ORCL)
Upside Potential: 21%
Number of hedge funds: 91
Oracle Corporation (NYSE:ORCL) is a leading provider of cloud applications, platform services, and engineered hardware systems. The company holds a significant market share in database management systems and offers a wide range of enterprise solutions, including Oracle Cloud Infrastructure (OCI), data management, and enterprise resource planning (ERP) software. Oracle’s cloud and license business encompasses key technologies like Oracle Database and MySQL, which are widely utilized across various industries.
Oracle Corp. (NYSE:ORCL) is aggressively expanding its cloud offerings, positioning itself as a formidable player in the cloud infrastructure market. The company has reported significant increases in cloud revenue, driven by the rising demand for cloud services and applications. The integration of AI and machine learning into Oracle’s cloud solutions is expected to enhance its offerings, making it an attractive choice for businesses modernizing their IT infrastructure. Additionally, Oracle is expanding its global data center footprint to meet growing customer demands and is poised to benefit from the $500 billion ‘Project Stargate,’ which aims to position the company as a leader in AI compute.
In January 2025, Oracle Corp. (NYSE:ORCL) announced plans to enhance its global cloud infrastructure by adding eight new cloud regions in North America and Asia over the next 12 months. The company will also introduce new capabilities for ‘Oracle Database@Google Cloud’ to increase customer value. Furthermore, it plans to double data center capacity in key regions like London, Frankfurt, and Ashburn to meet increasing demand, reflecting its commitment to expanding its cloud services and infrastructure.
Overall, ORCL ranks 11th on our list of best big tech stocks to buy according to analysts. While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.