UBS’ Top Quant Stocks In AI, IT, Healthcare & Other Sectors: Top 33 Stocks In All Sectors

5. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Investors In Q2 2024: 93

Sector: Information Technology

Oracle Corporation (NYSE:ORCL) is one of the biggest enterprise resource planning (ERP) firms in the world. Its experience in providing businesses with their resource management needs has enabled the firm to become one of the key players in the artificial intelligence industry. While Oracle Corporation (NYSE:ORCL) does not develop AI software or foundational models, it has access to the oil of the AI industry, a.k.a., NVIDIA’s GPUs. Through its Oracle Cloud Infrastructure business, the firm aims to offer as much as 131,072 of NVIDIA’s latest Blackwell GPUs to AI companies in 2025. Given that Blackwell is in short supply, this provides Oracle Corporation (NYSE:ORCL) with a wide moat in the AI infrastructure industry. Additionally, it also enjoys a key moat in the ERP industry courtesy of its 18.4% market share which makes it the second biggest player in the market. Firms are typically hesitant to switch ERP vendors due to costs and disruption risks, which means that Oracle Corporation (NYSE:ORCL) stands to enjoy stable recurring revenue for long time periods.

Janus Henderson mentioned Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter. Here is what the fund said:

“Enterprise software company Oracle Corporation (NYSE:ORCL) was a top contributor to relative performance. The company reported revenue and bottom line metrics that were in line to slightly below consensus; however, it also reported record bookings for new business. This accelerating revenue growth outlook is being driven by AI cloud infrastructure deals and boosted sentiment in the stock.”