In June 2024, Oracle’s stock rose by 20.5%, driven by the company’s strong performance in the fourth quarter. Despite mixed earnings results, Oracle’s partnership with OpenAI and the growth of its Oracle Cloud Infrastructure (OCI) platform captured investors’ attention. CEO Safra Katz highlighted the significance of OCI in helping to propel the company’s AI initiatives, attracting interest from analysts and boosting stock prices by 13.3%.
The partnership with OpenAI, along with Oracle’s focus on AI infrastructure investments, led several analysts to raise their price targets for the company’s shares. Oracle’s stock has gained 149% in the first half of 2024, demonstrating newfound momentum in the AI market. While Oracle’s valuation may not be cheap, trading at 39 times earnings and 7.5 times sales, it offers a more affordable option compared to other high-priced AI industry peers like Nvidia and Microsoft.
Investors looking for growth potential in the AI sector may find Oracle’s renewed focus on AI technology and fair valuation attractive. With the company’s strong performance in the fourth quarter and its strategic partnerships, Oracle is well-positioned for future growth in the fast-evolving AI market. Analysts are optimistic about Oracle’s prospects and the company’s ability to capitalize on the increasing demand for AI infrastructure and solutions.
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https://www.fool.com/investing/2024/07/07/why-oracle-stock-gained-205-in-june/