Oracle Corporation: Insider Tip Among AI Stocks

Artificial intelligence is gaining increasing importance across a variety of industries, including less prominent sectors such as utilities, mining, and media. In the utilities industry, AI plays a crucial role in enhancing the efficiency and reliability of power generation, distribution, and usage. A notable application is predictive maintenance, where AI algorithms analyze data from sensors embedded in infrastructure components like power grids and pipelines. This enables the early detection of potential failures, reducing downtime and maintenance costs. According to a report by McKinsey & Company, AI-powered predictive maintenance can lower maintenance costs by up to 40%, extend the lifespan of assets by 20%, and reduce unplanned outages by 50%. The mining sector, traditionally labor-intensive and hazardous, also benefits significantly from AI. One of the most impactful applications is automation and the use of autonomous systems. AI-driven autonomous vehicles and machinery are now widely used in large mining operations, reducing the need for human presence in dangerous environments. According to a report by PwC, autonomous haulage systems (AHS) in mining can decrease operating costs by up to 15% while simultaneously increasing productivity by 20%. Additionally, AI enhances mineral exploration and resource estimation. Machine learning can analyze geological data to identify potential mining sites with greater accuracy and in less time than traditional methods. This not only reduces exploration costs but also minimizes environmental impacts by focusing efforts on the most promising areas. In the media sector, AI is revolutionizing the creation, distribution, and consumption of content. AI-powered algorithms are increasingly used to personalize content recommendations, which are crucial for streaming platforms. These algorithms analyze vast amounts of user data to predict preferences, boosting user engagement and subscriber numbers. According to Netflix, the company's recommendation engine, supported by AI, saves over a billion dollars annually by reducing churn and increasing viewing time. Moreover, AI is vital in combating digital piracy and protecting intellectual property. Machine learning algorithms scour the internet for unauthorized content distribution, allowing companies to swiftly remove pirated material. The global market for AI in media and entertainment is projected to reach $100 billion by 2030, with a compound annual growth rate (CAGR) of 27% from 2023, underscoring the significance of AI in this fast-paced industry. Oracle Corporation, an IT giant, ranks second on the list of lesser-known AI stocks. With products and services that serve IT environments worldwide, Oracle offers an attractive mix of growth and value for AI investors. Although the company expects double-digit revenue growth in fiscal year 2025, the stock is still traded at a price-to-earnings ratio of about 23, significantly below the average of its software competitors. In the last quarter, Oracle secured over 30 AI deals, including a contract with OpenAI, the California-based AI startup funded by tech giants like Microsoft, which sparked the AI wave in 2022 with the launch of ChatGPT. Despite some setbacks, such as the failed server deal talks with Elon Musk's xAI, Oracle continues to receive positive reviews from Wall Street. Jefferies analyst Brent Thill recently reaffirmed his "Buy" rating and a price target of $150 for the stock. He emphasized that Oracle's pipeline is growing faster than bookings and revenues, aiding the company in reaching $65 billion in revenue by fiscal year 2026. In conclusion, while Oracle is a promising candidate in AI stocks, other stocks with potentially higher returns also exist. For a more affordable alternative, refer to our report on the cheapest AI stock.