One Oracle Corp (NYSE: ORCL) analyst is turning positive as he sees the software company sharpening its edge in cloud on the back of GPU supply constraints.
What Happened: UBS analyst Karl Keirstead upgraded Oracle from a Neutral rating to a Buy rating and raised the price target from $120 to $140, citing upside potential in Oracle cloud infrastructure.
"We are increasingly confident that Oracle has carved out an under-appreciated edge in terms of its GPU capacity as well as its OCI architecture, enough to attract new customers and drive OCI usage," the UBS analyst said in a new note to clients.
Keirstead highlighted GPU supply constraints for several big cloud infrastructure providers like Microsoft Corp (NASDAQ: MSFT) and noted that following a series of checks, Oracle appears to be benefiting.
The company has outsized allocations of Nvidia ...