Bullish Outlook Lifted Oracle Corporation (ORCL) in Q3

Parnassus Investments, an investment management firm, released its “Parnassus Value Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund focuses on owning a concentrated portfolio of U.S. large-cap stocks. For the third quarter of 2025, the fund reported a net return of 7.46% outperforming its benchmark, the Russell 1000 Value Index, which returned 5.33% for the same period. During the quarter, the portfolio reduced its weight in the IT sector to increase holdings in the Health Care sector. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

In its third-quarter 2025 investor letter, Parnassus Value Equity Fund 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 -9.42%, and its shares gained 6.11% of their value over the last 52 weeks. On December 18, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $180.03 per share, with a market capitalization of $517.25 billion.

Parnassus Value Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:

"Oracle Corporation (NYSE:ORCL) stock benefited from the firm's bullish outlook for its cloud services segment. The software and cloud infrastructure provider continues to benefit from the AI megatrend, signaling that cloud growth will accelerate."

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 122 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter, which was 124 in the previous quarter. In the second quarter of fiscal 2026, Oracle Corporation (NYSE:ORCL) reported total revenues of $16.1 billion, up 14% compared to Q2 last year. 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 buzzing AI stocks on Wall Street. 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.