We recently published a list of 15 Hot Tech Stocks to Buy Right Now. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against other hot tech stocks to buy right now.
In 2024, the S&P 500 IT Sector Index outperformed the broader S&P 500 Index, rising approximately 36% compared to a 23% increase in the latter. This performance was underpinned by emerging trends and innovations, particularly generative AI (GenAI) and the huge investments that went into creating the infrastructure to support the growth of such technologies.
According to Gartner, the year 2025 might see a further uptick in investments. In its January 21, 2025 report, Gartner forecasts Worldwide IT spending to grow 9.8% year-over-year in 2025 to total $5.61 trillion. Among the segments, data center systems, devices, and software are projected to see double-digit growth in 2025 primarily due to GenAI hardware upgrades.
While increasing investment is a positive sign, John-David Lovelock, distinguished VP Analyst at Gartner, shared the complex intricacies of these investments in the report:
“While budgets for CIOs are increasing, a significant portion will merely offset price increases within their recurrent spending. This means that, in 2025, nominal spending versus real IT spending will be skewed, with price hikes absorbing some or all of budget growth. All major categories are reflecting higher-than-expected prices, prompting CIOs to defer and scale back their true budget expectations.
IT services companies and hyperscalers account for over 70% of spending in 2025. By 2028, hyperscalers will operate $1 trillion dollars’ worth of AI optimized servers, but not within their traditional business model or IaaS Market. Hyperscalers are pivoting to be part of the oligopoly AI model market.”
As indicated by these forecasts, technology continues to remain an exciting space in 2025.
Our Methodology
To shortlist the 15 hot tech stocks to buy, we screened companies with a market capitalization of at least $2 billion, more than 20% share price gains in the last 6 months and a potential upside of at least 20%. The stocks were then arranged in ascending order of their potential upside to arrive at the final list. We also included the number of hedge fund holders for each company based on hedge fund data from Insider Monkey’s database.
Note: All pricing data is as of market close on February 4.
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: 22%
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 13th on our list of hot tech stocks to buy right now. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
