Oracle (NYSE:ORCL | ORCL Price Prediction) is in the midst of an incredible winning streak. After losing for so long, perhaps it shouldn’t come as a surprise when the name is powering higher at a pace not seen in some number of years. Indeed, that’s why catching a bottom in a fallen stock (or the market) can be so incredibly difficult.
With the S&P 500 and Nasdaq 100 back to new highs, the software industry powering higher, and some investors caught off-guard by the vicious upside move, perhaps it’s time for those who didn’t have enough time to go bargain hunting in the past week to consider the names that are still cheap.
Whenever you have a name, like Oracle, that still looks as cheap as can be, while it has newfound momentum behind it, it might be a timely, but definitely more comfortable buy. Sell-side analysts, who’ve been remarkably bullish on Oracle stock, as I’ve noted in prior pieces, even when it seemed like the earth was falling for the legacy software company and AI infrastructure fast-mover.
Oracle stock is melting up viciously. It’s still a far cry away (around 47%) from its high
After a great week of relief that saw shares of Oracle power nearly 25% higher, suddenly, such bulls look as smart as can be. But who looks even smarter? The funds that have been buying into weakness when it felt like nobody else wanted to step in, and everybody wanted to offload their positions, either because of AI’s threat to software or the risks of moving too fast on AI infrastructure builds.
Of course, it was quite a week for the AI infrastructure names, especially as Allbirds (NASDAQ:BIRD), now known as NewBird AI, shifted gears, going from footwear to AI. It was a surprising move, to say the least, but one that I think could be the start of a trend as other firms look to make moves into renting out GPUs to AI innovators who clearly cannot get enough compute to feel satiated. Symptom of a bubble? Perhaps. But what if a bubble doesn’t bring down everything?
When it comes to Oracle, the company has the expertise to get the infrastructure perfect. When it comes to cooling, energy, and all the inner workings of data centers built for the AI age, there’s more to it than you think. Best of luck to firms looking to do an Allbirds-like pivot, but I think AI infrastructure sounds easy on paper, but might actually be tough to implement.
Either way, I think Oracle’s AI tailwind is coming online again, and perhaps the high price targets of analysts aren’t so far-fetched, after all, now that the market is coming back to its senses after a turbulent start to 2026.
This smart value fund scooped up Oracle at the right time
With the Hillman Value Fund initiating a position in Oracle in the first quarter (it probably won’t be the only smart money fund to take an interest in the fallen AI infrastructure play) to the magnitude of 14,000 shares, I do think that Oracle has what it takes to be a new kind of smart money favorite. It’s an AI play, it’s a software play, and it’s cheap because those who are bullish on AI’s disruptive impact on software might not be fans of the software side and vice versa.
At these deep value depths, though, I think there’s a strong case for owning Oracle as a play on software that will thrive in the agentic AI age, as well as the gem that is Oracle Cloud Infrastructure (OCI).
Even at 31.5 times trailing price-to-earnings (P/E), Oracle might still have a long way to go to the upside, especially if it pulls off another outstanding quarter while much of Wall Street grows more forgiving of the hefty CapEx bills. After all, Anthropic’s disruptive impact on software suggests the monetization potential is there. And the interest in OpenClaw suggests agentic AI is the real deal.
Either way, AI compute is the space to be, and Oracle’s latest melt-up signifies that much of the market still has no idea what to do with the name. For smart contrarians with an appetite for value, I’d say that might open up a window of opportunity.
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