Although many artificial intelligence (AI) stocks may seem like they’ve gotten too expensive to own, there are stocks out there which are still just starting to pick up steam. One example is database giant Oracle (NYSE:ORCL). After releasing a strong earnings report, the stock has been rallying and made a bullish crossover.
The tech stock’s 50-day moving average recently crossed over its 200-day moving average, in what’s known as a “golden cross” and which is a very bullish indicator for investors. When that happens, it’s possible that triggers more buying activity.
On March 11, the company reported better-than-expected earnings when it posted its third-quarter results. Adjusted earnings per share of $1.41 was higher than analyst expectations of $1.38, and the company only slightly missed on revenue ($13.28 billion versus $13.3 billion).
Oracle is a bit of an underrated AI play but it has been experiencing an uptick in demand for its AI servers. And that demand isn’t likely going to slow down given the ongoing need for greater AI capabilities.
Due to the strong earnings numbers, shares of Oracle are now up 21% this year. And over the past five years, the stock has risen by more than 140%. Despite these impressive gains, there could still be more room to run for Oracle as it trades at 20 times its expected earnings and it has a PEG ratio of just over 1.
If you’re looking for a decently valued tech stock which can benefit from long-term trends in AI, Oracle could be one of the better options out there today.
