MDB - Oracle: Beating AI Slowdown With OpenAI

2024-07-20 07:02:35 ET

Summary

• Oracle labeled as a high conviction idea in enterprise software by Piper Sandler despite the AI industry slowdown.
• Partnerships, especially with OpenAI, set Oracle up for future AI collaborations and revenue growth.
• Oracle's financial metrics show a promising outlook with strong revenue and EPS growth projections, indicating high upside potential.
• With this, I remain a buy on the stock. They are becoming mission-critical to the future of AI.

Investment Thesis

According to an insight from Piper Sandler , AI growth has been slowing in multiple areas. Despite this industry wide trend, Piper Sandler labeled Oracle ( ORCL ) as one of their “high conviction ideas'' in enterprise software. With this, I believe the company is well-positioned to continue to ride the AI wave and withstand any potential slowdowns. While Oracle has faced setbacks regarding the fallout with the xAI deal , I am confident the company's database technology will excel....

For further details see: