Jefferies keeps a Buy rating and $220 price target on Oracle (ORCL) while noting that today’s 14% decline in the stock price is “overdone”. DeepSeek’s release is “part of an ongoing evolution, not revolution”, and innovations which continue to drive increasing efficiency at inference will further improve the ROI of AI, leading to faster software adoption, the analyst tells investors in a research note. Most hyperscalers are expected to be capacity constrained with AI driven backlog far exceeding that of its capex ramp, the firm states, adding that the market is overreacting on Oracle as core AI capacity demand has not changed.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ORCL:
- S&P 500 Hammered by DeepSeek AI Release
- Trump Trade: U.S. and Colombia reach deal, tariffs on hold
- Street sees ‘golden buying opportunity’ in tech amid DeepSeek selloff
- Oppenheimer sees DeepSeek as positive for Amazon, negative for Microsoft
- Trump denies holding talks with Oracle about possible TikTok deal, Reuters says