Positive. Oracle's success in AI and revenue growth from government program are promising.

From Nasdaq, Inc.: 2025-02-28 17:15:00

Artificial intelligence (AI) has significantly boosted Oracle’s (NYSE: ORCL) business, with shares rising 50% in the past year. The company’s participation in the U.S. government’s Stargate program, a $500 billion investment in AI infrastructure, has driven revenue growth. Oracle’s success in AI is attributed to its foundation in databases and cloud computing infrastructure, leading to a 24% increase in cloud revenue and 9% growth in total sales. CEO Safra Catz anticipates continued AI demand, with fiscal 2025 revenue expected to grow double digits over the prior year.

Despite Oracle’s AI success, its stock is down from a 52-week high, presenting a possible buying opportunity. However, Oracle’s P/E ratio is high compared to competitors, indicating the stock may still be overpriced. Consider using dollar-cost averaging to build a position over time. The Motley Fool’s Stock Advisor team has identified the 10 best stocks to buy now, with Oracle not included in the list. Past recommendations from Stock Advisor have shown significant returns for investors.



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