We recently published a list of the 10 Best Machine Learning Stocks to Buy Now. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against other machine-learning stocks.
Grand View Research reported that the global machine-learning market was valued at $36.73 billion in 2022. It’s now expected to grow at a 34.8% CAGR from 2023 to 2030. Machine learning helps machines and systems learn from experience instead of through explicit programming. It uses algorithms to improve and analyze vast amounts of complex data to make informed decisions. Machine learning is quickly progressing as AI is rapidly expanding and transforming how businesses and individuals operate. These technological advancements are revolutionizing consumer experiences, and enabling convenient creation of digital services, products, and optimized supply chains. With this, startups can focus on specific solutions while larger companies can deliver comprehensive AI platforms.
On April 10, Amazon CEO Andy Jassy joined CNBC’s ‘Squawk Box’ to discuss the cost of AI and what has to happen to bring it down. Jassy emphasized that the growth in data center demand is now so significant that there is no foreseen attenuation here, even with ongoing macroeconomic uncertainties under tariffs. While there’s a general belief that the emergence of DeepSeek could now reduce the need for extensive data centers, processing power, and energy consumption previously forecasted at different tech companies, Jassy thinks that DeepSeek’s introduction did not disrupt any of this. Despite cost reductions that occurred have already over time, AI deployment still requires significant investment. He thinks that the current AI operations are expensive due to chip costs and other factors, but big techs, including his own company, would welcome any reductions in AI costs for customers moving forward.
Jassy underscored the demand for data centers despite tariff impacts and reflected optimism regarding lowering costs, which would potentially drive innovation and expanded use of AI across industries. AI is still limited and requires substantial human oversight as of now but it has massive potential across various sectors.
Our Methodology
We sifted through ETFs and financial media reports to compile a list of the top ML stocks. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 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) offers products and services that address enterprise IT environments globally. Its Oracle Cloud SaaS offering includes cloud software applications like Oracle Fusion Cloud ERP, and Oracle Fusion Cloud supply chain & manufacturing management. The company integrates machine learning into cloud applications, database management systems, and business analytics tools.
TD Cowen maintained a buy rating on the company on March 7, with a $210 price target. The firm’s sentiment came from its positive outlook on the company’s new Stargate partnership. This partnership is expected to invest around $500 billion in AI infrastructure in the US in a period of 4 years. The company is also securing multibillion-dollar contracts for GPU clusters which positions it as a leader in the AI sector.
The company has a strong Oracle Cloud Infrastructure (OCI) segment, which is its suite of cloud computing services. OCI revenue surged by 51% year-over-year in FQ3 2025. The company’s Infrastructure as a Service (IaaS) segment within OCI especially rose by 51% in the quarter. The cloud database services revenue was also up 28%, while autonomous database consumption increased by 42%. The company is now expanding its infrastructure. Its power capacity is expected to 2x within FY25, and 3x by FY26.
Due to the company’s growing cloud business, Artisan Global Opportunities Fund sees it as a strong investment opportunity and stated the following regarding Oracle Corp. (NYSE:ORCL) in its Q4 2024 investor letter:
“Notable adds in the quarter included GE Vernova and Oracle Corporation (NYSE:ORCL). We believe Oracle is entering an interesting profit cycle as its faster growing business units become a larger percentage of the revenue mix. Most notably, Oracle Cloud Infrastructure (OCI) has undergone a significant product upgrade cycle that will enable it to be the primary incremental top-line growth driver. The company is winning new accounts due to its attractive pricing, flexibility and expanding geographic availability. Also, within its SaaS segment, we believe the companywill benefit from the secular trend toward cloud computing. Oracle experiences a significant profit boost as it moves its lower margin on-premise database business to the cloud (through any cloud provider), which operates at higher margins. The company recently surprised investors by announcing a 2029 revenue target of $104 billion, which implies an acceleration in annual revenue growth to ~16%fromthecurrent ~9%–10%levels. Shares pulled back in the quarter, and we used it as a buying opportunity.”
Overall, ORCL ranks 9th on our list of the best machine learning stocks to buy now. While we acknowledge the growth potential of ORCL, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
