This Analyst Says Oracle Is Still in the Early Innings of Its AI Success Story. Should You Buy ORCL Stock Here?

Oracle's (ORCL) current run seems more substantial than a normal "post-earnings pop." The company, which announced fiscal third-quarter results on March 10, demonstrated its ability to grow much faster than investors have become accustomed to while maintaining profitability at the same time. This is a big deal for a company that, until now, was more of a mature enterprise software stock than a true winner in the AI infrastructure space. 

Oracle reported fiscal third-quarter revenue of $17.2 billion, a 22% increase from the prior year, as well as a 21% increase in non-GAAP EPS to $1.79. The company's cloud revenue came in at $8.9 billion, with cloud infrastructure revenue increasing 84%. This is the context for D.A. Davidson's Gil Luria, who maintains a positive view on the company's stock.