Is Oracle Corporation (ORCL) One of The AI Stocks Analysts are Betting on?

Oracle Corporation (NYSE:ORCL) is one of the AI stocks analysts are betting on. On November 26, HSBC maintained its Buy rating on Oracle Corporation (NYSE:ORCL) with a $382 price target, highlighting the company’s efforts to explore funding options for cloud infrastructure expansion.

While Oracle has not yet detailed a specific plan, HSBC noted that capital-intensive projects could use structures such as special purpose vehicles or joint ventures to limit balance sheet risk. The firm also pointed to Oracle’s $500 billion in remaining performance obligations, strong revenue visibility, and focus on maintaining its investment-grade rating as it competes with AWS and Azure for market share.

On the same day, Deutsche Bank reiterated its Buy rating with a $375 price target, emphasizing Oracle’s partnership with OpenAI amid recent share price weakness and questions around AI capacity commitments. Deutsche Bank noted that excluding OpenAI-related revenues and expenses could reduce EPS by $4 to $17 and free cash flow by $10 billion to $31 billion by FY2030.

Even so, the bank argued that the market is undervaluing Oracle’s OpenAI business and that under conservative assumptions, the company could still generate $15 EPS and $26 billion in free cash flow. Analysts expect Oracle’s December 15 earnings report to provide more clarity on its financial outlook and AI strategy.

Oracle Corporation (NYSE:ORCL) integrates Artificial Intelligence (AI) and Machine Learning (ML) into its cloud infrastructure, a dedicated AI data platform, and its enterprise software applications to automate processes, provide predictive insights, and enhance decision-making across various business functions.

While we acknowledge the potential of 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.

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