Oracle Corporation (ORCL): A Bull Case Theory

We came crossed a bullish thesis connected Oracle Corporation connected techcache’s Substack by Joe Albano. In this article, we volition summarize the bulls’ thesis connected ORCL. Oracle Corporation's stock was trading astatine $200.94 arsenic of December 1st. ORCL’s trailing and guardant P/E were 46.75 and 29.50 respectively according to Yahoo Finance.

Oracle Corporation (ORCL) reported a anemic quarter, with gross maturation and guidance lagging peers specified arsenic Broadcom. However, a standout fig was its $455 cardinal unreality and AI-related backlog—up 359% year-over-year—signaling massive aboriginal demand. The surge stems from the industry’s modulation from AI exemplary grooming to inferencing, wherever real-time responses to idiosyncratic queries necessitate changeless compute power. As large AI players similar OpenAI, Meta, Nvidia, and xAI struggle with constricted inferencing capacity, Oracle’s database expertise and flexible unreality exemplary marque it a preferred provider.

Rather than owning immense data centers, Oracle embeds its hardware successful spouse facilities, reducing superior strength and accelerating monetization arsenic capableness goes live. Still, the standard of enlargement is immense: Oracle spent $8.5 cardinal in CapEx last 4th and projects $35 cardinal for FY26, with gross guidance of astir $67 billion. Free currency travel remains bladed adjacent $1.4 cardinal arsenic the institution prioritizes infrastructure buildout implicit near-term profitability. This attack positions Oracle to seizure semipermanent AI infrastructure growth, but investors whitethorn look a lull until 2028, erstwhile its backlog starts converting into important revenue.

While the company’s 29% operating borderline and proven request enactment the thesis, the stock’s valuation already prices successful overmuch of the expected upside, leaving constricted short-term entreaty and imaginable volatility ahead. Technically, Oracle’s multi-decade rally appears adjacent the extremity of its 5th wave, with near-term upside capped astir $364–$404 and downside hazard toward $237. Overall, Oracle’s aboriginal looks strong, but timing and execution stay key.

Previously we covered a bullish thesis connected Microsoft Corporation (MSFT) by Long-term Investing successful February 2025, which highlighted the company’s AI-driven maturation and beardown unreality show done its concern with OpenAI. The company’s banal has appreciated astir by 18.78% since our sum arsenic the AI-led maturation thesis played out. Joe Albano shares a akin presumption but emphasizes Oracle’s chiseled relation successful AI inferencing infrastructure.

Oracle Corporation is on our database of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 124 hedge money portfolios held ORCL at the extremity of the second quarter which was 97 in the erstwhile quarter. While we admit the imaginable of ORCL as an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.