Tech giants like Oracle and Dell have seen their stocks rise significantly this year as the demand for AI technologies continues to grow. Oracle, known for its enterprise software and database solutions, has experienced a 34% increase in share prices in 2024. On the other hand, Dell Technologies, a company specializing in computers and servers, has seen an impressive 90% surge in share prices during the same period.
AI has played a crucial role in reigniting investor interest in these stocks. Oracle, for instance, has capitalized on the increased interest in AI by expanding its cloud infrastructure services, leading to a 42% increase in revenue from these services. The company’s focus on cloud AI services has led to a significant growth in its remaining performance obligations, which rose 44% year over year to $98 billion in the fourth quarter of fiscal 2024.
Similarly, Dell Technologies has found success in the AI space, particularly through its Client Solutions Group and infrastructure solutions business. The company’s revenue in the first quarter of fiscal 2025 increased by 6% year over year, with its infrastructure solutions business experiencing a 22% revenue growth. Dell’s AI-optimized servers have been in high demand, with the company receiving $2.6 billion worth of AI server orders last quarter and currently holding a $3.8 billion order book.
Analysts see potential growth opportunities for both Oracle and Dell in the AI market. While Dell may appear as a more affordable investment option with a diversified AI portfolio, Oracle’s focus on cloud AI services could lead to long-term revenue growth. Ultimately, the choice between these two tech giants as AI stocks will depend on individual investors’ risk profiles and comfort levels with each company’s growth prospects in the AI sector.
Article Source
https://www.fool.com/investing/2024/06/26/artificial-intelligence-ai-stock-oracle-dell/
