From Nasdaq: 2024-08-04 09:15:00

AI stocks are thriving on Wall Street, with five of the top six performers in the Nasdaq 100 connected to the sector. Billionaires are favoring Oracle (NYSE: ORCL) over Nvidia (NASDAQ: NVDA), increasing their stakes significantly in the first quarter of 2024.

David Shaw leads the pack by tripling his Oracle holdings, while other billionaires like David Tepper and Ken Griffin also added to their positions. The interest in Oracle stems from its rapid growth in cloud services and AI capabilities, attracting investors seeking exposure to these areas.

Oracle’s market cap remains below $400 billion, contrasting with tech giants like Microsoft and Amazon. However, Oracle’s focus on cloud computing and AI has billionaires bullish on its potential for future growth and profitability, driving increased investor interest.

The recent quarter marked Oracle’s full emergence in the high-growth cloud business, with partnerships with companies like Google Cloud and OpenAI boosting its AI capabilities. This shift toward higher-growth segments makes Oracle an appealing investment for long-term investors.

While some billionaires are jumping into Oracle, it wasn’t among the 10 best stocks identified by the Motley Fool Stock Advisor team. Investors considering Oracle should weigh its AI and cloud computing potential against other high-growth opportunities in the market to make informed investment decisions.



Read more at Nasdaq: Forget Nvidia: Billionaires Are Buying Up This Artificial Intelligence (AI) Stock Instead