Oracle Corp.’s stock is already seen as an artificial-intelligence beneficiary, but UBS analyst Karl Keirstead thinks that Wall Street may be underestimating the company’s opportunity there. He upgraded Oracle’s stock
ORCL,
+3.04%
to buy from neutral Tuesday, writing that the company seems to have an “underappreciated edge” over rivals thanks to its graphics-processing-unit capacity at a time of supply shortages, as well as its Oracle Cloud Infrastructure architecture.
Oracle’s stock was up more than 2% in Tuesday morning trading. Read: A Microsoft in the making? Oracle’s cloud momentum is giving one analyst flashbacks. “Our independent checks corroborated the notion that Oracle is benefiting from outsized allocations of Nvidia GPUs relative to its size,” Keirstead wrote. “We could be sitting in front of 6-12 months of GPU shortage noise and we haven’t even seen the $2 [billion] in AI start-up commitments convert to OCI usage.” He added that he had been skeptical “about the existence and certainly sustainability of any network-based OCI architectural advantage over the Big 3” but said his checks suggest Oracle “could have a GPU speed-to-deployment edge” and that its core database business could end up a winner. Although Oracle shares are up more than 40% this year, Keirstead thinks “the AI story still has plenty of time/room to play out.” In his view, Oracle is only a quarter into seeing AI startups ramp up their usage of OCI, and he sees potential catalysts on the horizon as the company approaches its CloudWorld e …
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ORCL,
+3.04%
to buy from neutral Tuesday, writing that the company seems to have an “underappreciated edge” over rivals thanks to its graphics-processing-unit capacity at a time of supply shortages, as well as its Oracle Cloud Infrastructure architecture.
Oracle’s stock was up more than 2% in Tuesday morning trading. Read: A Microsoft in the making? Oracle’s cloud momentum is giving one analyst flashbacks. “Our independent checks corroborated the notion that Oracle is benefiting from outsized allocations of Nvidia GPUs relative to its size,” Keirstead wrote. “We could be sitting in front of 6-12 months of GPU shortage noise and we haven’t even seen the $2 [billion] in AI start-up commitments convert to OCI usage.” He added that he had been skeptical “about the existence and certainly sustainability of any network-based OCI architectural advantage over the Big 3” but said his checks suggest Oracle “could have a GPU speed-to-deployment edge” and that its core database business could end up a winner. Although Oracle shares are up more than 40% this year, Keirstead thinks “the AI story still has plenty of time/room to play out.” In his view, Oracle is only a quarter into seeing AI startups ramp up their usage of OCI, and he sees potential catalysts on the horizon as the company approaches its CloudWorld e …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]