Oracle Corp (NYSE: ORCL) is among the top companies in the AI sector, according to Wedbush Securities analyst Dan Ives. Ives believes that major tech giants are racing to capture a $4 trillion market in AI, with GPUs being described as the new “oil” or “gold” in the tech industry. He predicts that the AI party is just beginning and that the first wave of AI is benefiting the leading tech giants, with subsequent waves beginning to impact other companies.
Ives suggested that the AI-led bull run could last for another two to three years, with market capitalizations of top tech companies expected to reach between $3 trillion and $4 trillion within a year. He highlighted several stocks, including Oracle Corp, that could benefit from the AI revolution. Oracle recently posted weak fiscal fourth-quarter results but has signed multiple AI deals with industry leaders such as OpenAI and Microsoft. The company’s cloud infrastructure revenue increased by 42% year over year, and it expects revenue and EPS growth in the coming quarters.
Oracle’s partnerships with major AI players and its dominance in the OCI market niche make it an attractive investment opportunity. The company’s forward P/E ratio of 22.03 is compelling compared to its peers. Madison Sustainable Equity Fund remains optimistic about Oracle’s position in generative AI workloads and its strategy in the AI sector.
Overall, Oracle Corp ranks seventh on Insider Monkey’s list of top AI stocks, showing promise for future growth. While Oracle is a solid investment, there may be other AI stocks with higher potential returns in the near term. Investors looking for AI stocks with promising growth potential can explore other options that offer higher returns in a shorter period. The AI sector continues to evolve and expand, presenting numerous opportunities for investors seeking exposure to this rapidly growing market.
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