Trending Articles- Crypto Meltdown. 240,000 Liquidated, $100 Billion Wiped Off Crypto Market Cap.
- Trump’s Greenland Tariff Suspension: Crypto Prices Rebound as Investors Weigh Rally Longevity
- When is the US President Trump’s speech at WEF in Davos and how could it affect EUR/USD
- Gold nears $4,700 record as US–EU trade war fears ignite haven rush
- Gold Price Forecast: XAU/USD surges to all-time high above $4,650 amid Greenland tariff threats
- US-Europe Trade War Reignites, Bitcoin’s $90,000 Level at Risk
On Tuesday, database king Oracle (NYSE: ORCL), hardly for the first time, was an outperformer on the stock market. The company's shares ticked nearly 3% higher on the day, thanks to a report of a potentially major tie-up in the artificial intelligence (AI) field with a top tech sector peer. That rise topped the nearly 1% gain of the S&P 500 index on the day.
OpenAI and Oracle apparently in discussions for AI hardware
According to a report from tech industry news site The Information, leading AI solutions developer OpenAI is discussing a deal with Oracle. Citing an unnamed "person who heard the remarks," the former company's management told certain employees that OpenAI "would play a greater role in lining up data centers and AI chips" to advance the technology, rather than depending entirely on its partner Microsoft to do so.
The article stated that OpenAI is dissatisfied with the speed at which Microsoft is supplying it with servers. AI is resource-intensive, and requires significant amounts of processing power and storage. Microsoft is a major investor in OpenAI, having poured billions of dollars into the company.
Neither Oracle nor Microsoft or OpenAI has yet officially commented on this report.
It's only speculation at this point
If the article is accurate, Oracle stands in front of an exciting and potentially very lucrative business opportunity with OpenAI (developer of the most high-profile commercial AI program, ChatGPT). If these discussions are occurring, they are at an early stage, however, and investors should not pile into Oracle stock on that basis alone.
Should you invest $1,000 in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $782,682!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of October 7, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
