Oracle is undervalued around $130 with about $20 upside to $150 as OCI becomes a major AI-infrastructure growth engine, aided by triple-digit cloud-infrastructure growth and a $664B backlog. Negative free cash flow and the difficulty of converting backlog into revenue are risks, so he invests only a moderate amount.

Okay, the third stock is Oracle. Oracle ORCL. You may have heard of this stock before, and Oracle is obviously a huge company, which is really interesting because most people still view it as traditional, but it is far from it.

Historically, yes, it has worked in the field of enterprise software and databases. That's exactly what it was , wasn't it? But Oracle built one of the most important database companies in the world.

Today, tens of thousands of large companies rely on Oracle for their databases. Therefore, enterprise resource planning (ERP) software , financial systems, and other applications are extremely important.

But the reason I'm really interested in Oracle today is completely different from everything it has built in the past. Oracle is rapidly becoming one of the largest companies operating in the field of artificial intelligence infrastructure.

So , yes, this is the third arrow that will be in the field of artificial intelligence. But again, given the decline in artificial intelligence, you know? I will not explain myself in detail.

It's obvious. I really believe there is a profitable opportunity here, so I am sharing it with you, subscribers of Uncle Henry's channel .

Through Oracle's cloud infrastructure (OCI), the company is building massive data centers equipped with graphics processing units (GPUs) that businesses can use to train artificial intelligence and its inferences.

Oracle has a real competitive advantage ; it has long-standing relationships with some of the world’s largest companies and a huge software business that generates huge profits.

And now, all of that is combined with one of the fastest-growing cloud AI companies in the market. So, you are not just buying a startup hoping to increase demand for artificial intelligence or its eventual emergence .

The demand already exists, but Oracle is exploiting it in a very specific way, which I believe will generate huge profits for them.

If you are buying Oracle shares now, you are in fact buying a well-established and profitable technology company, building a second growth engine around artificial intelligence infrastructure.

The numbers show how fast this transformation is. So, let's take a look at the financial data, which is the second part of this stock analysis, where we can clearly see how radical the Oracle business sector is undergoing.

In the last quarter, Oracle generated $19.3 billion in revenue, a 30 % year-over-year increase, but I don't think that's the most important figure. Total cloud computing revenue jumped 62% to $11.6 billion, and Oracle's cloud infrastructure revenue saw tremendous growth of 121% year-over-year to $7.4 billion .

For a company the size of Oracle, triple-digit growth is one of the most significant sectors I have ever seen. Therefore, this is a tremendous growth engine for the company, and I believe it will continue to grow.

I mean, triple-digit growth means that a huge company is growing at that speed.

Here are the numbers that interest me most: Oracle now has $ 664 billion in outstanding performance commitments . So, once again, this is an important number for predicting the future, okay?

In short, this figure represents revenue from huge contracts that have not yet been recorded. In the last quarter alone, Oracle secured additional AI cloud computing contracts worth more than $30 billion .

So, when people ask me, "Why are you optimistic about Oracle?" Because I'm participating in an investment challenge, I decided to do a simple covered buy strategy for Oracle stocks, which is the subject of

Yes, there may be a hurdle, which is that building enough data centers to meet all this demand will cost huge sums of money, but I think this will happen. It is in everyone's interest in the entire AI ecosystem right now to get everything off the ground as quickly as possible , because today's dollar is better than tomorrow's dollar.

Believe me, I think these companies will succeed in achieving that. I mean, it's billions of dollars, and all the power of influential figures, leaders, and others in the world is striving to achieve this goal.

So, I just keep an eye on where the money goes, and try to get my share of it.

Oracle spent heavily on building AI infrastructure during fiscal year 2026 , and despite achieving a record $ 32 billion in operating cash flow , its free cash flow was actually negative.

It reached $23.7 billion , which is a risk, but at the same time I am not surprised. This is what is supposed to happen when you rush into investing this size, because the overall target market is very large in the future.

So, yes, that will affect today's profits. This is not surprising.

So, when the stock price drops, and when we have an opportunity with a company that grows like this , and then its price drops , we turn to my father. No problem. Let me invest some money.

Oracle has contracts worth hundreds of billions of dollars, but management now has to build the infrastructure and convert the backlog of work into revenue, and ultimately into cash flow, which, you know, I admit will be a bit difficult .

That's why I don't invest a large amount of money in Oracle. I am really interested in investing some of my money in Oracle,

and let's take a look at the technical analysis to show you what I see now. Okay, guys. Here is the price of Oracle stock trading at around $130. What's astonishing, and this is absolute madness, is that Oracle's stock price was above $300.

I have never invested in Oracle at these levels. In fact, I didn't even invest in it at the $200 level . I only recently became interested in Oracle, and I only recently started discussing it , because I think the stock price of $120 was excellent.

It was a good stock, but now I'm not making a big profit because I bought it for around $120 . Its price rose significantly, but has now dropped to $130. I think $130 is a reasonable price for Oracle, and I think that with this insane and unjustified rise, a price of around $150 is a very good price for Oracle.

So, there is no excessive rise, but the profit opportunity I see in Oracle is $20, and with a share price of $130, I see the stock as currently undervalued.