Morgan Stanley and RBC Capital Lower Oracle (ORCL) Price Targets

Oracle Corporation (NYSE:ORCL) is one of the 10 Best AI Software Stocks to Buy Right Now. On January 23, Morgan Stanley reduced its price target on Oracle Corporation (NYSE:ORCL) from $320 to $213 and kept its Equalweight rating.

Morgan Stanley pointed to worries about the company’s GPU-as-a-Service (GPUaaS) business. The firm believes that this represents a significant opportunity for Oracle Corporation (NYSE:ORCL). However, the buildout could push the company’s earnings per share below its targets. The research firm warned that the GPUaaS expansion is expected to drive “materially higher funding needs.” Morgan Stanley sees a “balanced risk/reward” profile for Oracle Corporation (NYSE:ORCL) and noted that these risks are already reflected in the current share price.

Previously, on January 5, RBC Capital lowered the price target on Oracle Corporation (NYSE:ORCL) from $250 to $195 and maintained its Sector Perform rating. According to the firm, 2026 is likely to be a year when the benefits of AI become clearer for companies that are well-positioned to benefit from enterprise AI adoption. However, RBC Capital noted that companies that are less prepared could continue to face pressure because of the “AI is the death of software” narrative.

Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company specializing in database software, cloud infrastructure, and enterprise software solutions. The company offers one of the industry’s broadest and deepest suites of AI-powered cloud applications.

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.

READ NEXT: 11 Most Profitable Cheap Stocks to Invest In Now and 12 Best 5G Stocks to Invest In According to Hedge Funds.

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