Oracle Corporation (NYSE:ORCL) is one of the best growth stocks to invest in according to billionaires.
On March 13, Guggenheim reiterated its Buy rating on Oracle and kept its $400 price target, one of the highest targets on the Street. Analyst John DiFucci argued that Oracle’s recent quarter strengthened the case for the stock as a long-duration AI and cloud story, pointing in particular to the company’s $553 billion remaining performance obligations, which were up 325% year over year. He said the current spending cycle could set up a “free cash flow waterfall” in fiscal 2029 and 2030 once today’s infrastructure build-out starts converting into revenue at scale.
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The backdrop for that call was Oracle’s fiscal third-quarter report on March 10. The company posted $17.2 billion in revenue, up 22% year over year, while non-GAAP earnings per share rose to $1.79. Cloud revenue climbed 44% to $8.9 billion, and cloud infrastructure revenue jumped 84% to $4.9 billion. Oracle also raised its fiscal 2027 revenue target to more than $90 billion.
Oracle Corporation (NYSE:ORCL) provides database software, cloud infrastructure, and enterprise applications. Its business spans cloud infrastructure, database platforms, and software products used by enterprises and governments worldwide.
While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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