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Oracle Eyes AI Surge: Analysts Predict High-Growth Momentum

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  Published in Stocks and Investing on Friday, November 28th 2025 at 10:02 GMT by Insider Monkey

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Is Oracle Corporation (ORCL) One of the AI Stocks Analysts Are Betting on?

The surge of generative AI has turned the technology spotlight onto a handful of major cloud and software providers, from Microsoft and Amazon to Nvidia and the less‑publicized Oracle Corporation. While the headlines have largely focused on the more visible players, a growing number of analysts are turning their attention to Oracle as a potential high‑growth catalyst. The article from MSN Money explores why that might be the case, pulling together recent corporate moves, earnings data, and research reports that point to a promising, though still nascent, AI trajectory for the long‑term growth stock.

Oracle’s AI‑First Road Map

Oracle’s foray into AI began quietly. The company had long been a dominant force in database management, but its early‑adopted “Autonomous Database” platform was only the starting point for a broader AI agenda. In the past two years Oracle has accelerated its offerings with the following key initiatives:

1. Oracle AI Platform Cloud Service (APCS) – a fully managed platform that lets customers build, deploy, and scale generative AI models on Oracle Cloud Infrastructure (OCI). The service leverages OCI’s strong compute and storage capabilities and integrates with Oracle’s existing data management stack.

2. Partnership with OpenAI – In a surprise collaboration announced in early 2024, Oracle agreed to bring OpenAI’s GPT‑4 and future models to its cloud customers. The deal is expected to provide Oracle’s enterprise customers with a ready‑made generative AI engine that can be applied to a range of use‑cases, from chatbots to code generation.

3. Oracle Digital Assistant and Autonomous Analytics – Oracle has wrapped AI into its customer‑service and analytics tools, providing pre‑trained models that automate data analysis and generate natural‑language insights.

Oracle’s AI strategy is anchored in its strength as a database and enterprise‑software vendor, giving it an advantage in handling the massive data needs that drive AI workloads. The company has positioned its AI offerings not as a direct competitor to Microsoft’s Azure or Google Cloud’s Vertex AI, but as a complementary set of services that can be embedded into existing Oracle workloads.

Recent Earnings & Financial Pulse

Oracle’s latest quarterly earnings report, released in March 2024, showed a solid growth of 6.5 % in cloud and license revenue, largely driven by its AI‑powered services. Analysts noted that Oracle’s AI‑related revenue grew by 12 % YoY, a figure that eclipses the company’s overall cloud revenue growth of 4.5 %. Profit margins on the AI services were reported at 42 %, a respectable figure for a company that has traditionally had tighter margins compared to pure‑play cloud players.

One striking piece of data is Oracle’s “AI‑Enhanced Cloud Infrastructure” which saw a 17 % increase in adoption among mid‑market customers. The company’s CFO highlighted that AI workloads accounted for a significant portion of the total compute hours consumed on OCI in the quarter, suggesting a shift in usage patterns.

Analyst Opinions & Target Prices

The article brings together a panel of research analysts to illustrate the spectrum of sentiment around Oracle’s AI prospects:

• Morgan Stanley: Upgraded Oracle to “Buy” with a new 12‑month price target of $68, up from $56. The note cites the OpenAI partnership as a “strategic differentiator” that could push Oracle’s AI services into new vertical markets.

• Goldman Sachs: Maintains a “Hold” stance but raised its target to $71 after Oracle’s Q1 revenue beat. They point to Oracle’s ability to bundle AI services with its legacy database products as a potential moat.

• Wells Fargo: Upgraded Oracle to “Buy” with a target of $63, noting the company’s “steady pipeline of AI use‑cases” across its customer base and the “high switching costs” of database infrastructure.

• Jefferies: A more cautious view, suggesting Oracle’s AI offering may still be “in its infancy” relative to competitors, but still sees a upside of 18 % in the next 12‑months if the company can maintain its AI‑driven revenue growth rate.

These varied opinions reflect the uncertainties that still surround Oracle’s AI play. While Oracle’s database dominance gives it a ready platform, the company faces competition from other software giants that have more established AI ecosystems.

Competitive Landscape

The article contextualizes Oracle’s AI positioning by comparing it to the likes of Microsoft Azure, Amazon Web Services (AWS), and Google Cloud. All three have integrated generative AI into their platform stack and are backed by deep capital and brand recognition.

• Microsoft: Leveraging its Azure OpenAI Service, Microsoft is already on the market with a suite of pre‑built models. Oracle’s partnership with OpenAI, while noteworthy, still lags in marketing visibility and customer reach.

• AWS: With SageMaker and its own Anthropic partnership, AWS offers a broad range of AI tools. Oracle, however, benefits from its established customer relationships in the enterprise database space.

• Google Cloud: Vertex AI and its partnership with DeepMind give Google a strong AI footing. Oracle’s strengths lie in data governance and security, which could be compelling for certain regulated industries.

The article notes that Oracle’s advantage is its “data‑centric” approach – a key asset for enterprises that are data‑heavy and require stringent security compliance. This is especially relevant for sectors such as banking, healthcare, and government.

Risks & Caveats

While the AI story is exciting, several risks are highlighted:

• Execution risk: Oracle has historically been slow to adopt new revenue models. Whether it can scale AI services quickly enough to keep pace with competitors remains uncertain.

• Integration risk: Merging generative AI into Oracle’s existing stack may require significant engineering effort, potentially impacting product timelines.

• Competitive pressure: The AI market is highly saturated, and price wars are already seen in the cloud sector.

• Macroeconomic headwinds: Any downturn could see customers delay AI investments, hurting Oracle’s growth trajectory.

Bottom Line

The article concludes that Oracle’s AI initiatives are a noteworthy part of its overall transformation, and analysts are already positioning it as a potential high‑growth stock. While the company may not yet command the same brand hype as Microsoft or Amazon, its data‑centric strengths, strategic OpenAI partnership, and steady financial growth provide a compelling case for cautious optimism.

For investors considering an AI‑focused allocation, Oracle represents a “mid‑tier” option that combines a proven enterprise platform with an emerging AI offering. Its price performance over the past year has trailed the “mega‑cap” AI champions, but many analysts expect that trajectory to shift as Oracle’s AI services begin to capture more market share. Whether Oracle’s AI bets translate into a substantial premium remains to be seen, but the story is clearly unfolding, and the company’s deep data roots give it a unique advantage in the competitive AI race.