Nvidia shares are up 25% in the last month, rallying near a record ahead of tech earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 09 2024
0mins
Should l Buy ORCL?
Source: CNBC
Nvidia's Stock Performance: Nvidia shares have surged 25% recently, nearing a record high as the company benefits from the AI boom, with significant revenue growth and strong demand for its GPUs, particularly the new Blackwell AI chip.
Market Position and Future Outlook: Nvidia has surpassed Microsoft in market value, holding about 95% market share in AI training chips, while analysts project continued demand despite potential risks from geopolitical tensions and export restrictions.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 136.480
Low
180.00
Averages
309.59
High
400.00
Current: 136.480
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tech Companies Stock Price Movements Analysis
- Oracle Stock Rise: Oracle shares increased by 2% after DA Davidson upgraded its rating from neutral to buy, with analysts believing that a revamped OpenAI will regain its position as Google's top competitor, enhancing collaboration potential with Oracle.
- STMicroelectronics Partnership Expansion: STMicroelectronics saw a 7% stock increase following a multi-billion-dollar partnership announcement with Amazon Web Services to support infrastructure for cloud and AI data centers, which is expected to drive future revenue growth for the company.
- Kroger CEO Transition: Kroger's shares jumped nearly 5% after the Wall Street Journal reported that former Walmart executive Greg Foran will be appointed as the new CEO, indicating a potential strategic shift that could enhance the company's performance in a competitive retail market.
- Hims & Hers Health Crisis: Hims & Hers stock plummeted 18% after it withdrew its copycat weight-loss pill following legal threats from Novo Nordisk, highlighting the importance of intellectual property in the market and potentially impacting Hims & Hers' future product strategy.
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OpenAI's Strategic Shift Boosts Oracle's Outlook
- Strategic Adjustment: Analyst Gil Luria from D.A. Davidson notes that OpenAI has corrected several strategic missteps since September, refocusing on ChatGPT and its core frontier model, which is expected to enhance the performance of key beneficiaries like Oracle within its ecosystem.
- Ad Monetization: OpenAI's move to turn on ads is critical for increasing revenue and reducing cash burn, and the analyst believes this will drive model performance beyond investor expectations, subsequently boosting stock performance for related companies.
- Capital Raising: Luria anticipates that OpenAI will raise $100 billion in capital by the end of the quarter, which will fund Oracle's data center construction, and he views this fundraising as a catalyst for outperforming market expectations.
- TikTok USA Impact: The analyst highlights that the addition of TikTok USA could bring Oracle an additional $5 billion to $9 billion in revenue, and despite reports of friction during the separation from ByteDance, he remains optimistic about its continued success in the U.S. market.
See More
Big Tech Stocks Under Market Pressure
- Market Volatility Intensifies: Last week, Big Tech stocks saw over $1 trillion wiped from their market caps, creating a tense market atmosphere, with Oracle and Microsoft rising 1.6% and 0.8% respectively, while Meta and Amazon struggled, reflecting investor concerns over future expenditures.
- Surge in Capital Expenditures: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections nearing $700 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, highlighting a strong investment demand for AI infrastructure.
- Cloud Growth Potential: Despite negative market reactions to Amazon and Alphabet's capex guidance exceeding expectations, analysts believe robust cloud growth will continue to drive stock prices, especially amid accelerating data center demand.
- Increased Management Confidence: In the face of macroeconomic pressures, Bank of America analysts noted that management teams are increasingly confident in their demand forecasts, anticipating full capacity utilization by 2026, indicating a positive outlook for the industry.
See More
Big Tech Stocks Experience Market Volatility
- Market Volatility Impact: Following a week where over $1 trillion was wiped from market caps, Big Tech stocks showed flat performance in premarket trading on Monday, indicating market uncertainty, particularly with rising capital expenditure plans in the AI sector.
- Surge in Capital Expenditure: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections soaring to $660 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, reflecting strong industry confidence in AI investments.
- Divergent Stock Performance: As of 6:12 a.m. ET, Oracle rose 1.5% and Microsoft edged up 0.8%, while Meta and Amazon fell 0.3% and 0.1% respectively, showcasing varied performances among stocks amidst overall market weakness, which could influence investor decisions.
- Cautious Future Outlook: Despite growing margins for cloud companies, analysts warn of potential stock volatility due to macroeconomic pressures; however, management's confidence in demand forecasting may lead to full capacity utilization by 2026, providing some reassurance to investors.
See More
Big Tech Loses Over $1 Trillion in Valuation
- Big Tech Valuation Loss: According to FactSet, major tech companies collectively lost over $1 trillion in valuation over the past week, with Amazon alone shedding more than $300 billion, indicating a significant decline in market confidence that could impact future investment decisions.
- Sex Crime Scandal Exposure: Prominent Silicon Valley figures, including Google co-founder Sergey Brin and LinkedIn co-founder Reid Hoffman, have been linked to files related to sex offender Jeffrey Epstein, which may have long-term reputational consequences for their companies and exacerbate public trust issues in the tech industry.
- Japanese Election Outcome: Japan's ruling Liberal Democratic Party secured a supermajority in the recent election, reinstating Sanae Takaichi as Prime Minister, which grants her broad authority to boost spending and suspend certain food taxes; this result has bolstered Japanese stocks and strengthened the yen to 156.88 against the dollar, reflecting renewed investor confidence.
- U.S. Market Rebound: The Dow Jones Industrial Average closed above 50,000 for the first time, marking a strong market rebound, while the S&P 500 and Nasdaq Composite rose by 1.97% and 2.18%, respectively, a trend that could attract more investors back into the market and drive economic recovery.
See More
Japan's LDP Secures Overwhelming Election Victory
- Election Impact: Japan's Prime Minister Sanae Takaichi and her ruling LDP secured a supermajority in the election, controlling over two-thirds of the Lower House, which allows her to freely pursue an agenda of increased spending and suspension of certain food taxes, likely stimulating economic growth further.
- Market Surge: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence and indicating positive market expectations regarding Takaichi's policies.
- U.S. Market Rebound: Major U.S. indexes rebounded post-election, with the S&P 500 rising 1.97% and the Nasdaq Composite climbing 2.18%, driven by strong performances from tech stocks like Nvidia and Oracle, which bolstered global investor confidence.
- Private Credit Concerns: The private credit market faces renewed uncertainty as AI pressures software companies, raising investor concerns about borrower business models and potentially increasing default risks, which could impact overall financial stability.
See More
Tech Companies Stock Price Movements Analysis
- Oracle Stock Rise: Oracle shares increased by 2% after DA Davidson upgraded its rating from neutral to buy, with analysts believing that a revamped OpenAI will regain its position as Google's top competitor, enhancing collaboration potential with Oracle.
- STMicroelectronics Partnership Expansion: STMicroelectronics saw a 7% stock increase following a multi-billion-dollar partnership announcement with Amazon Web Services to support infrastructure for cloud and AI data centers, which is expected to drive future revenue growth for the company.
- Kroger CEO Transition: Kroger's shares jumped nearly 5% after the Wall Street Journal reported that former Walmart executive Greg Foran will be appointed as the new CEO, indicating a potential strategic shift that could enhance the company's performance in a competitive retail market.
- Hims & Hers Health Crisis: Hims & Hers stock plummeted 18% after it withdrew its copycat weight-loss pill following legal threats from Novo Nordisk, highlighting the importance of intellectual property in the market and potentially impacting Hims & Hers' future product strategy.
See More
OpenAI's Strategic Shift Boosts Oracle's Outlook
- Strategic Adjustment: Analyst Gil Luria from D.A. Davidson notes that OpenAI has corrected several strategic missteps since September, refocusing on ChatGPT and its core frontier model, which is expected to enhance the performance of key beneficiaries like Oracle within its ecosystem.
- Ad Monetization: OpenAI's move to turn on ads is critical for increasing revenue and reducing cash burn, and the analyst believes this will drive model performance beyond investor expectations, subsequently boosting stock performance for related companies.
- Capital Raising: Luria anticipates that OpenAI will raise $100 billion in capital by the end of the quarter, which will fund Oracle's data center construction, and he views this fundraising as a catalyst for outperforming market expectations.
- TikTok USA Impact: The analyst highlights that the addition of TikTok USA could bring Oracle an additional $5 billion to $9 billion in revenue, and despite reports of friction during the separation from ByteDance, he remains optimistic about its continued success in the U.S. market.
See More
Big Tech Stocks Under Market Pressure
- Market Volatility Intensifies: Last week, Big Tech stocks saw over $1 trillion wiped from their market caps, creating a tense market atmosphere, with Oracle and Microsoft rising 1.6% and 0.8% respectively, while Meta and Amazon struggled, reflecting investor concerns over future expenditures.
- Surge in Capital Expenditures: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections nearing $700 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, highlighting a strong investment demand for AI infrastructure.
- Cloud Growth Potential: Despite negative market reactions to Amazon and Alphabet's capex guidance exceeding expectations, analysts believe robust cloud growth will continue to drive stock prices, especially amid accelerating data center demand.
- Increased Management Confidence: In the face of macroeconomic pressures, Bank of America analysts noted that management teams are increasingly confident in their demand forecasts, anticipating full capacity utilization by 2026, indicating a positive outlook for the industry.
See More
Big Tech Stocks Experience Market Volatility
- Market Volatility Impact: Following a week where over $1 trillion was wiped from market caps, Big Tech stocks showed flat performance in premarket trading on Monday, indicating market uncertainty, particularly with rising capital expenditure plans in the AI sector.
- Surge in Capital Expenditure: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections soaring to $660 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, reflecting strong industry confidence in AI investments.
- Divergent Stock Performance: As of 6:12 a.m. ET, Oracle rose 1.5% and Microsoft edged up 0.8%, while Meta and Amazon fell 0.3% and 0.1% respectively, showcasing varied performances among stocks amidst overall market weakness, which could influence investor decisions.
- Cautious Future Outlook: Despite growing margins for cloud companies, analysts warn of potential stock volatility due to macroeconomic pressures; however, management's confidence in demand forecasting may lead to full capacity utilization by 2026, providing some reassurance to investors.
See More
Big Tech Loses Over $1 Trillion in Valuation
- Big Tech Valuation Loss: According to FactSet, major tech companies collectively lost over $1 trillion in valuation over the past week, with Amazon alone shedding more than $300 billion, indicating a significant decline in market confidence that could impact future investment decisions.
- Sex Crime Scandal Exposure: Prominent Silicon Valley figures, including Google co-founder Sergey Brin and LinkedIn co-founder Reid Hoffman, have been linked to files related to sex offender Jeffrey Epstein, which may have long-term reputational consequences for their companies and exacerbate public trust issues in the tech industry.
- Japanese Election Outcome: Japan's ruling Liberal Democratic Party secured a supermajority in the recent election, reinstating Sanae Takaichi as Prime Minister, which grants her broad authority to boost spending and suspend certain food taxes; this result has bolstered Japanese stocks and strengthened the yen to 156.88 against the dollar, reflecting renewed investor confidence.
- U.S. Market Rebound: The Dow Jones Industrial Average closed above 50,000 for the first time, marking a strong market rebound, while the S&P 500 and Nasdaq Composite rose by 1.97% and 2.18%, respectively, a trend that could attract more investors back into the market and drive economic recovery.
See More
Japan's LDP Secures Overwhelming Election Victory
- Election Impact: Japan's Prime Minister Sanae Takaichi and her ruling LDP secured a supermajority in the election, controlling over two-thirds of the Lower House, which allows her to freely pursue an agenda of increased spending and suspension of certain food taxes, likely stimulating economic growth further.
- Market Surge: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence and indicating positive market expectations regarding Takaichi's policies.
- U.S. Market Rebound: Major U.S. indexes rebounded post-election, with the S&P 500 rising 1.97% and the Nasdaq Composite climbing 2.18%, driven by strong performances from tech stocks like Nvidia and Oracle, which bolstered global investor confidence.
- Private Credit Concerns: The private credit market faces renewed uncertainty as AI pressures software companies, raising investor concerns about borrower business models and potentially increasing default risks, which could impact overall financial stability.
See More
