We recently published a list of Top 10 Trending AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Oracle Corp (NYSE:ORCL) stands against other top trending AI news updates investors should not miss.
Generative artificial intelligence is the technology that promises to revolutionize the financial services sector in ways not seen in years. From altering the way institutions operate to enhancing service delivery, the technology is also making it easy to make decisions that generate long-term value. Nevertheless, its most significant impact is enhancing the analysis of vast amounts of structured and unstructured data, therefore aiding in generating meaningful insights.
The technology is also being relied upon to enhance fraud detection, given its ability to simulate potential attack scenarios and provide solutions to avert them. Generative artificial intelligence also makes it easy for financial institutions to identify vulnerabilities and strengthen defenses. Its use is also transforming various facets of financial services, including credit management, banking operations, and customer service. Significant expansion and operational change are also anticipated.
Likewise, the global market for generative artificial intelligence in financial services is expected to reach record highs of $18.9 billion by 2030. That’s because it is growing at a compound annual growth rate of 38.7%, according to research findings by Research and Markets.
A mix of technological innovations, operational necessities, and evolving customer demands propels the rapid integration of generative AI in the financial services sector. A significant factor contributing to this trend is the growing intricacy of financial markets, necessitating advanced tools to analyze and produce actionable insights from extensive data sets.
“The financial services industry has moved beyond innovation pilots to real-world implementation in 2024-25,” said Pratik Shah, Partner and National Leader – Financial Services, EY India. “Firms are integrating GenAI with core banking systems, including CRM, loan origination, and card management platforms.”
Similarly, the growing demand for personalized financial offerings, such as tailored investment strategies and flexible loan options, is also fuelling the integration of generative AI solutions. Additionally, pressures related to regulatory compliance have further expedited the integration of AI, as companies strive to automate and improve the precision of their compliance processes to adhere to strict legal requirements.
Moreover, the fusion of AI with blockchain and quantum computing technologies is opening avenues for new applications in areas like secure international transactions and quantum-resistant financial modelling. Shifts in consumer behaviour, such as the desire for immediate financial interactions and self-service capabilities, are motivating financial institutions to implement generative AI solutions to fulfil these expectations.
Our Methodology
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds in Q4 2024.
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).
A team of IT professionals meticulously crafting a large-scale enterprise performance management system.
Oracle Corp (NYSE:ORCL)
Number of Hedge Fund Holders: 105
Oracle Corp (NYSE:ORCL) is a software infrastructure company that offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software is a service offering that includes various cloud software applications. It also integrates AI into its cloud services and applications, offering both pre-built and customizable AI models, including generative AI. The company’s customer base received a significant boost on March 18 when Singapore’s Defence Science and Technology Agency (DSTA) selected it for cloud offerings.
The company has since signed an Oracle Cloud Isolated Region agreement with the Ministry of Defence (MINDEF) and Singapore Armed Forces (SAF). The deal paves the way for the company to provide high-performance, air-gapped, and secure sovereign cloud computing solutions. Singapore’s Defense Science and Technology Agency will also access data management and artificial intelligence services in a safe environment.
“The demand for secure and scalable cloud solutions is growing. It is more than just data storage and computing—it will be the foundation for a lot of innovation. Through this pilot collaboration with Oracle, we will harness advanced cloud and AI technologies to digitalize and transform our operations,” said Mr Ng Chad-Son, Chief Executive of DSTA.
Overall, ORCL ranks 1st on our list of top trending AI news updates investors should not miss. While we acknowledge the potential of ORCL as an investment, 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
