Oracle (ORCL) Cloud Infrastructure's Role in Shaping the AI Landscape

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. large-cap growth equities continued to recover from a sharp sell-off in early April. Strong corporate earnings, investor enthusiasm around artificial intelligence (AI), and growing expectations for Federal Reserve policy easing drove the robust gains. The portfolio returned 6.3% (net) in the quarter, compared to the benchmark's 10.5% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was -25.55%, and its shares gained 12.18% of their value over the last 52 weeks. On November 21, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $204.96 per share, with a market capitalization of $584.298 billion.

Sands Capital Select Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:

"Oracle Corporation (NYSE:ORCL) is emerging as a leader in infrastructure for AI workloads. Oracle Cloud Infrastructure (OCI) is moving from a second-tier competitor in the CPU-based cloud infrastructure paradigm to the preeminent infrastructure provider for some of the most significant AI companies. An inflection in large-scale, multi-year customer commitments from AI companies, including OpenAI, demonstrates this shift. While Oracle also has well-established database and enterprise resource planning (ERP) software businesses that account for the majority of current revenues and earnings—and themselves have reasonably attractive growth prospects—the long-term growth case increasingly rests on its cloud infrastructure business."

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 124 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the second quarter, up from 97 in the previous quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of stocks Jim Cramer discussed recently. In Q3 2025, Oracle Corporation (NYSE:ORCL) contributed to Loomis Sayles Global Growth Fund's performance. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.