Jim Cramer’s Exclusive List: 10 Stocks to Monitor Closely

5. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Investors: 93

Jim Cramer highlights Oracle Corporation (NASDAQ:ORCL)’s strength in the data center space, emphasizing that its centers have some of the most secure operations, the lowest costs, and minimal errors in the industry. This efficiency is achieved by automating operations, as Oracle Corporation (NASDAQ:ORCL)’s data centers are largely run by machines rather than humans, which helps eliminate mistakes. According to Cramer, this automation allows each data center to become more profitable as it grows, leading to higher earnings for the company. This performance was a key reason why Oracle Corporation (NASDAQ:ORCL)’s stock surged 11%, reflecting the market’s confidence in the company’s ability to drive significant growth in the technology sector.

“Oracle Corporation’s data centers boast some of the best security, lowest costs, and fewest mistakes. We know they won’t make mistakes because the company is staffing these monsters with nothing but machines. Each one will make more money, and the bigger they get, the higher the earnings will go. That’s why the stock shot up 11%. Technology up 11%!”

The optimistic outlook for Oracle Corporation (NASDAQ:ORCL) is based on its strong performance in cloud services, expanding AI capabilities, and strategic partnerships. In Q1 FY 2025, Oracle Corporation (NASDAQ:ORCL) exceeded expectations, with cloud revenue jumping 21% to $5.6 billion, and further growth is expected. A key development is Oracle Corporation (NASDAQ:ORCL)’s partnership with Amazon Web Services (AWS), which integrates Oracle Cloud Infrastructure (OCI) with AWS. This collaboration expands Oracle Corporation (NASDAQ:ORCL)’s presence in the cloud market by tapping into AWS’s large customer base.

Oracle Corporation (NASDAQ:ORCL) is also focusing more on AI-powered services like its HeatWave managed service for data analytics, positioning the company for long-term growth. With an 11% increase in its stock recently, contributing to a nearly 48% year-to-date gain, investor confidence in Oracle Corporation (NASDAQ:ORCL)’s future is strong. Oracle Corporation (NASDAQ:ORCL)’s leadership in enterprise software, combined with its ongoing advancements in cloud and AI, creates a strong case for continued growth.

Carillon Eagle Growth & Income Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter:

“Oracle Corporation (NYSE:ORCL) stock rose to all-time highs after the company announced better than expected cloud infrastructure revenue. Oracle signed dozens of new customers, including two leaders in generative artificial intelligence. The backlog remains, and strong growth appears poised to accelerate.”