Oracle's Data Software Edge For Enabling AI (Rating Upgrade)
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Chetan Woodun8.58K FollowersFollow5ShareSavePlay(13min)CommentsSummaryOracle (ORCL) is well-positioned to benefit from AI adoption by leveraging its integrated infrastructure, database, and applications, differentiating itself from hyperscalers. Despite recent stock volatility and concerns over debt and negative free cash flow, ORCL's shift toward software sales and AI database services offers margin expansion potential. Oracle's unique ability to unify and provide private enterprise data for AI training is a key competitive advantage, especially as AI adoption shifts from public to private data. I assign a bullish rating with a $217 price target, citing cross-selling synergies, multicloud growth, and increasing integration of generative AI across Oracle's technology stack. Luis Alvarez/DigitalVision via Getty Images While everyone focuses on the billions of dollars being spent on purchasing GPUs and building AI infrastructure, Oracle’s (ORCL) edge in data software appears to be largely ignored by the market. I had alsoThis article was written byChetan Woodun8.58K FollowersFollowAs an Investment Research Analyst, I cover publicly listed securities (stocks and funds) listed on the NYSE/NASDAQ and mostly covering tech. My insights are mostly based on my own experience investing for 25 years, together with qualifications in Business Management and Equity Finance.I also have a degree in Electronics and Communications, and an MSc in Information Management. Having been through the GFC (Great Financial Crisis) of 2008 and its losses explains my mostly moderate positions and focus on strategies to preserve capital. My investment journey started in mutual funds before later converging to individual stocks and ETFs and I love doing my own research, and to this end, Seeking Alpha provides unique perspectives.I have also been a Team/Project lead, an IT Professional, an entrepreneur in real estate, and a farmer, and dedicate at least 20 hours per week to working on a non-profit basis.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.