Is Oracle Corporation (ORCL) A Hidden AI Stock to Buy Right Now?

We recently published a list of the 11 Hidden AI Stocks to Buy Right Now. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against other hidden AI stocks.

David Grain, Founder & CEO of Grain Management, joined CNBC on May 1 to discuss the AI-driven demand for data centers and tariff uncertainty. The main concerns regarding tariffs are the potential impact on costs, the resilience of supply chains, and the overall effect on business operations and their expansion. He also shared his perspective on why investors are still confident in the broadband and digital infrastructure sector. He characterized broadband as universally essential and emphasised that the demand for faster connectivity has not slowed, which is why the regulatory support for broadband expansion is globally robust. Grain noted that the administration has also met expectations for lighter regulation in the infrastructure sector, which makes it easier to advance projects and close deals. He described the admin’s stance as pro-growth and supportive of secure and competitive networks. Grain also observed that infrastructure, especially broadband, is an area where there is bipartisan support, given its positive impact on economic growth at both the state and local levels.

DeepSeek’s announcement was also followed by reports that suggested that some companies might be pulling back on data center spending. However, the latest earnings reports appeared to settle at least this debate and confirmed that the investments in this sector were still ongoing. David Grain elaborated on the current trends in data center investments and also stated that the demand for data centers is rising due to the increasing expansion of AI, as it requires vast amounts of computing power. He explained that while the demand here is not slowing, the feasibility of building new data centers is still influenced by the availability of reliable and high-capacity electricity.

Our Methodology

We sifted through financial media reports to compile a list of the top hidden AI stocks with AI-related operations and opportunities. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 105

Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise IT environments worldwide. Its Oracle cloud Software as a Service (SaaS) offering includes various cloud software applications. The company offers one of the industry’s broadest and deepest suites of AI-powered cloud applications.

The company also has established cloud partnerships with major tech players like OpenAI, xAI, Meta, NVIDIA, and AMD. Its cloud segment, which includes Infrastructure as a Service (IaaS) and SaaS, made a total of $6.2 billion, which marked an improvement of 23% year-over-year. IaaS revenue alone rose by 49% to make $2.7 billion.

TD Cowen maintained a buy rating on the stock on March 7, with a $210 price target. The firm has a bullish outlook on the company’s new Stargate partnership. This partnership is expected to invest around $500 billion in AI infrastructure in the US over 4 years. Oracle is also securing multibillion-dollar contracts for GPU clusters, which further positions it as a leader in the AI sector.

Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2025 investor letter:

“Oracle Corporation (NYSE:ORCL) provides products and services that address enterprise information technology (IT) environments. The company’s products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models. The company operates in three segments: Cloud and License, Hardware and Services.

We believe Oracle’s cloud infrastructure product, OCI 2.0, will continue to demonstrate strong revenue growth over several quarters. Additionally, we see the rapid growth of artificial intelligence (AI) computing needs as being a differentiated growth driver for Oracle. We believe that Oracle will continue to drive positive outcomes for the Cerner business through a better margin structure, as well as top-line sales synergies.”

Overall, ORCL ranks 1st on our list of the hidden AI stocks to buy right now. While we acknowledge the growth potential of ORCL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ORCL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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