Uranium and utilities stocks set to soar even higher as Big Tech goes nuclear
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 15 2024
0mins
Should l Buy ORCL?
Source: MarketWatch
Nuclear Energy Investment Outlook: The author, a long-time supporter of nuclear energy, believes that uranium stocks still have significant growth potential despite their recent surge of 400%-500% since 2017, compared to the S&P 500's 150% increase.
Tech Companies Embracing Nuclear Power: Major tech companies like Microsoft, Oracle, Amazon, and Google are increasingly committing to nuclear power, highlighted by Microsoft's deal to restart a Three Mile Island reactor in Pennsylvania.
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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: 157.160
Low
180.00
Averages
309.59
High
400.00
Current: 157.160
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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- Cloud One Program: This initiative offers Department of Defense customers the opportunity to leverage OCI, ensuring mission owners can meet boundary protection needs while enhancing overall security through the Secure Cloud Computing Architecture.
- AI Database Utilization: The task order enables users to utilize Oracle AI Database 26ai on OCI to securely combine organization-specific and public information, generating sophisticated answers and autonomously executing actions during agentic AI workflows.
- Project Timeline: Work under this task order will be performed at contractor-designated facilities throughout the United States and is scheduled to run through December 7, 2028, indicating Oracle's long-term collaboration potential within the Defense Information Systems Network.
See More
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- CMS Cloud Migration Selection: The Centers for Medicare & Medicaid Services (CMS) has chosen to migrate select on-premises workloads to Oracle Cloud Infrastructure (OCI) as part of an IT modernization effort, which is expected to enhance system performance and scalability while achieving cost efficiencies.
- Technical Support and Migration Planning: Oracle will provide migration planning and technical support to CMS during the transition to the new environment, which not only strengthens Oracle's competitiveness in the federal cloud market but may also attract more government clients.
- Stock Price Volatility and Market Reaction: Although the initial announcement boosted Oracle's stock price, it currently trades below both the 20-day and 100-day simple moving averages, indicating long-term weakness, with a 9.37% decline over the past 12 months.
- Analyst Ratings and Targets: Oracle's stock carries a 'Buy' rating with an average price target of $297.36, and despite the current low stock price, analysts remain optimistic about its growth prospects, suggesting an 87% upside potential worth noting.
See More
Oracle Corporation Shareholder Class Action Notice
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased Oracle Corporation (ORCL) shares between June 12, 2025, and December 16, 2025, to contact them regarding potential lead plaintiff status, indicating significant legal risks for the company.
- Allegations: The lawsuit alleges that Oracle made materially false and misleading statements during this period, failing to disclose that its AI infrastructure strategy would lead to massive capital expenditure increases without corresponding near-term revenue growth, potentially jeopardizing financial stability.
- Financial Risks: The substantial increase in spending has raised serious concerns regarding Oracle's debt and credit rating, as well as its free cash flow and ability to fund projects, exacerbating investor anxiety about the company's financial health.
- Participation Details: Shareholders must register by April 6, 2026, to participate in the class action, and upon registration, they will receive real-time updates on the case's progress, highlighting the urgent need for improved corporate governance and transparency.
See More
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- Market Concerns Intensify: Amazon's announcement of a $200 billion investment in AI-related capital expenditures by 2026 has led to a 9% decline in its stock year-to-date, reflecting investor worries about excessive AI spending potentially impacting future profitability.
- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
- SaaS Sector Struggles: Software companies like Salesforce and Adobe have seen significant stock price declines as investors fear that advancements in AI will severely disrupt the enterprise software industry, leading to a phenomenon dubbed the
See More
Oracle's Stock Decline Amid Industry Challenges
- Market Performance: Oracle's stock has plummeted 52% from its all-time high and is down 19.5% year-to-date, reflecting diminished investor confidence in its long-term growth potential amid a broader software industry slump.
- Cloud Investment: Oracle is heavily investing in its Cloud Infrastructure, with cloud revenue comprising 50% of its latest quarter's income; however, its database and data management software remain the high-margin cash cow, highlighting the challenges and opportunities during its transition.
- RPO Growth and Risks: Oracle's remaining performance obligations (RPO) reached $523 billion in December, with $300 billion tied to OpenAI, yet investor confidence is waning regarding OpenAI's ability to support its capital-intensive spending plans, adding to market uncertainty.
- Buying Considerations: Although Oracle trades at 26.8 times earnings and 19.4 times forward earnings, appearing cheap, investors should proceed with caution, needing to believe in the sustainability of its core software business and the realization of OpenAI's orders as initially anticipated.
See More
AI Stocks Decline Amid Spending Concerns
- Investor Concerns: Major AI and software stocks have declined year-to-date due to worries about AI spending and industry disruption, with Amazon and Microsoft seeing stock drops of approximately 9% and 17%, respectively, reflecting market skepticism about their planned capital expenditures of $200 billion and $100 billion.
- SaaS Industry Crisis: As AI technology advances, investors are increasingly anxious about the future of software-as-a-service (SaaS) companies, with some labeling the situation as the 'SaaSpocalypse,' leading to significant declines in stocks like Salesforce and Adobe, indicating concerns over traditional software profitability.
- ETF Investment Opportunity: Investors can consider buying the iShares Expanded Tech-Software ETF to capitalize on a potential rebound in software company share prices, which includes 114 North American software firms and has delivered an average annual return of 10.4%, despite a P/E ratio of 35.2, slightly above the Nasdaq-100's 32.4.
- Uncertain Industry Outlook: Despite industry insiders like Nvidia CEO Jensen Huang opposing the 'SaaSpocalypse' narrative, asserting that AI will not fully replace software, the ongoing sell-off in software stocks continues, prompting investors to carefully evaluate future investment opportunities.
See More
