Oracle Bull Says Software Giant Sharpening Its AI Edge
Portfolio Pulse from Adam Eckert
UBS analyst Karl Keirstead has upgraded Oracle Corp (NYSE:ORCL) from a Neutral rating to a Buy rating and raised the price target from $120 to $140. The upgrade is based on Oracle's edge in cloud due to GPU supply constraints. Oracle has outsized allocations of Nvidia Corp (NASDAQ:NVDA) GPUs relative to its size, and the GPU shortage could last for six to 12 months. Keirstead also noted that Oracle's SaaS business could benefit from AI.
August 29, 2023 | 4:17 pm
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NEGATIVE IMPACT
Microsoft is one of the big cloud infrastructure providers facing GPU supply constraints.
The GPU supply constraints could potentially impact Microsoft's cloud infrastructure services. This could potentially lead to a decrease in the stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Nvidia's GPUs are in high demand, and Oracle has outsized allocations of Nvidia GPUs relative to its size. The GPU shortage could last for six to 12 months.
The high demand for Nvidia's GPUs and the ongoing GPU shortage could potentially drive Nvidia's stock price up. Oracle's outsized allocations of Nvidia GPUs also indicate a strong partnership between the two companies.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Oracle's stock has been upgraded by UBS analyst Karl Keirstead from Neutral to Buy, with a price target of $140. The upgrade is due to Oracle's edge in cloud due to GPU supply constraints.
The upgrade by UBS analyst Karl Keirstead is a positive signal for Oracle's stock. The analyst cites Oracle's edge in cloud due to GPU supply constraints as the reason for the upgrade. This could potentially attract new investors and drive the stock price up.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100