Jim Cramer’s Latest Lightning Round: Top 10 Stocks

3. Oracle Corp (NYSE:ORCL)

Number of Hedge Funds Investors: 91

Jim Cramer in a program on CNBC said the following about Oracle Corp (NYSE:ORCL) ahead of the company’s earnings:

“Oracle is going to report, I bet they’re going to have some really positive things to say. Now, Oracle, very good software company, has become a great data center company, which was terrific until we learned that some Chinese outfit could create high-quality AI models using very much less expensive hardware.”

Oracle’s latest quarterly results missed estimates but there were some positive points. While overall revenue increased by 6% to $14.13 billion, and net income rose 22% to $2.94 billion, the cloud services segment, which makes up 78% of total sales, saw a 10% year-over-year increase, hitting $11.01 billion. Notably, cloud infrastructure revenue surged by 49% to $2.7 billion, driven by AI demand.

Oracle’s remaining performance obligations (RPO) surged to $130 billion, a 63% increase year-over-year, even without including contracts from Project Stargate. Project Stargate, a $500 billion AI infrastructure initiative involving major tech players and government backing, is expected to significantly impact Oracle’s revenue and RPO.

Oracle anticipates revenue growth of 15% for fiscal year 2026 and potentially 20% for fiscal year 2027. Given the growth in RPO and the potential from Stargate, the company believes it can exceed consensus revenue estimates for fiscal year 2025.

Polen Focus Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q4 2024 investor letter:

“We added to several existing positions in the quarter including Oracle Corporation (NYSE:ORCL), Zoetis, and Eli Lilly. Oracle was a recent addition to the portfolio last quarter, and results so far indicate an accelerating trajectory that we expect will continue for many years. The company’s OCI (Oracle Cloud Infrastructure) cloud infrastructure business enjoys large and durable advantages and is seeing much demand for normal cloud workloads with generative AI training and inference workloads as nice potential optionality on the upside.”