Oracle (NYSE:ORCL) is incorporating generative artificial intelligence (AI) features into its product lineup. The move will enable Oracle, which offers an integrated stack of cloud applications and cloud platform services, to enhance its competitive position against Microsoft (NASDAQ:MSFT) and other tech giants.
Oracle said it has implemented AI functionalities across multiple software platforms, with applications in finance, sales, supply chain management, and others. Furthermore, Oracle’s customers and partners will be able to integrate additional generative AI capabilities into their existing business workflows, which are specifically designed to address their industry needs.
Notably, Microsoft introduced Copilot, its generative AI tool, to boost productivity last year. Earlier this year, it expanded the reach of this tool beyond large enterprises and launched a new subscription plan called Copilot Pro, targeting individuals and small businesses.
AI Driving Demand
Oracle’s move to incorporate AI into its product lineup follows the company’s stronger-than-expected Q3 earnings on March 11. Oracle’s leadership highlighted that the company bagged several large new cloud infrastructure contracts during the third quarter. Further, its high-value customer base could continue to increase, driven by the demand for its Gen2 AI infrastructure.
The company’s management highlighted that demand for its Gen2 AI infrastructure is well ahead of supply. However, to meet demand, it is rapidly expanding its new and existing cloud data centers.
Is Oracle a Buy, Sell, or Hold?
Oracle stock is up about 51% in one year. Further, with 14 Buy and 14 Hold recommendations, Oracle stock has a Moderate Buy consensus rating. Analysts’ average price target on ORCL stock stands at $136.89, implying the stock could rise by 9.06% from current levels.
