Oracle, a company not typically associated with AI technology, is seeing benefits from the growing demand for AI-enabled cloud computing infrastructure. Despite Oracle stock being on the rise, there is still potential to invest in the company.
After being identified as an overlooked AI power in April, Oracle’s share price has seen a significant increase. Some analysts believe that a $200 price target for the stock is realistic, especially given the current rally it is experiencing.
Larry Ellison, Oracle’s co-founder and CTO, saw a substantial increase in his net worth in just one day due to Oracle’s fourth-quarter earnings report. The company’s cloud infrastructure revenue grew by 42% year over year to $2 billion, leading to a surge in the stock price.
Oracle’s CEO, Safra Catz, announced that the company had signed AI sales contracts totaling over $12.5 billion, including one with Open AI to train ChatGPT on Oracle Cloud. This focus on AI is part of Oracle’s strategy to position itself as an AI-first company.
In a surprising move, Oracle plans to invest over a billion dollars in AI technology in Spain, establishing a third cloud region in Madrid and promoting the development of AI skills in the country. This investment reflects Oracle’s commitment to expanding its presence in the European AI market.
Looking ahead, it is expected that Oracle stock will continue to rise, potentially surpassing $200 this year. Investors are encouraged to consider Oracle as a strong player in the AI and cloud computing sectors, with significant growth opportunities on the horizon.
David Moadel, the author of this article, does not currently hold any positions in the securities mentioned. The opinions expressed are his own and do not necessarily reflect those of InvestorPlace.com. David Moadel is a respected financial analyst and market researcher who has contributed content to various financial publications and platforms.
In conclusion, Oracle’s focus on AI technology and cloud infrastructure is driving significant growth in the company’s stock price. With continued investments in AI and cloud computing, Oracle is well positioned to capitalize on the growing demand for these technologies.
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https://investorplace.com/2024/07/dont-fight-the-tape-oracle-stock-will-break-200-this-year/