5 big analyst AI moves: SK Hynix hit by double downgrade; ADI named Top Semis Pick By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 22 2024
0mins
Should l Buy ORCL?
Source: Investing.com
Analyst Ratings and Market Outlook: William Blair initiated an Outperform rating for Arm Holdings, citing strong EPS growth potential driven by AI demand and market expansion, while also giving Broadcom a similar rating due to its strategic software expansion. Conversely, Morgan Stanley downgraded SK Hynix, predicting challenges beyond 2024 despite short-term earnings strength.
Tech Sector Growth Predictions: Wedbush analysts are optimistic about the tech sector following a Federal Reserve rate cut, viewing it as a catalyst for AI stock growth, with Nvidia leading the charge. Additionally, Melius Research upgraded Oracle to Buy, highlighting its strategic partnerships and growth potential in the AI cloud space.
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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.
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See More
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- Market Focus on AI Spending: Investors are wary of Oracle's AI expenditures, especially after its announcement to raise $50 billion for new data centers, and while its client list includes industry giants like Nvidia and Meta, concerns about OpenAI's funding capabilities may impact its stock performance.
See More
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- Large-Cap Tech Underperformance: As of February 4, 2026, large-cap tech stocks have declined approximately 3%, making them the worst-performing sector, reflecting investor concerns over high valuations and excessive AI spending, which may increase the risk of a market correction.
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See More
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- Oracle Financial Challenges: Oracle's stock has plummeted over 52% since September, with a market cap of only $440 billion, primarily due to its substantial spending on AI infrastructure and over $100 billion in debt, raising investor concerns about its financial health.
- Revenue Growth Potential: Despite debt pressures, Oracle reported a 14% year-over-year revenue increase in Q2 FY2026 to $16.05 billion, with net income soaring 95% to $6.13 billion, indicating strong growth potential in its cloud computing and software services sectors.
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See More
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- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt load exceeding $100 billion.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, although this includes a $2.7 billion pre-tax gain from the sale of Ampere Computing.
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See More
