Oracle (NYSE:ORCL) stock has seen its fortunes waver greatly over the past half year, though not necessarily for the better. Since a massive jump in its remaining performance obligations last fall triggered an astounding gain of 36% in a single session, ORCL has been mostly heading southbound.
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Indeed, a downward trend has been the dominant one in 2026, as broad worries over the sustainability of AI spending and geopolitical uncertainty dogged its share price. Through the end of last week, ORCL was down close to 30% year-to-date.
What a difference a day makes, as the company saw its share price surge by some 12% in yesterday’s session. While a tenuous ceasefire in the Middle East improved sentiment, some company-specific announcements sought to demonstrate the real-world benefits of its AI push.
In particular, Oracle shared at its Customer Edge Summit how its AI-powered Oracle Utilities Opower platform is driving efficiency gains and cost savings. The company provided figures to back these claims, such as residential bill savings of $369 million in 2025.
That’s a big reason for the surging share price, according to top investor Joe Tenebruso.
“Oracle’s AI-focused announcements reminded investors that it stands to benefit from the game-changing technology,” notes the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Tenebruso points out that one of the big questions facing investors (and everybody, really) is the extent to which AI will meet individuals in the real world.
Oracle provided a concrete example of AI at work, as it demonstrated an ability to both protect the electricity grid and save money, Tenebruso explains. He cites the technology’s ability to allow utilities to provide usage trends and alerts, while also utilizing AI-enhanced services to prevent equipment breakdowns and improve resiliency.
The investor points out that part of the reason for ORCL’s recent dip was due to fears that AI will negatively disrupt many software-related businesses. In that sense, this development helps to push back against that fear, while serving as an indication that “software isn’t dying.”
“AI is an opportunity more so than a threat,” sums up Tenebruso. (To watch Tenebruso’s track record, click here)
For its part, Wall Street is feeling good about Oracle. With 27 Buys and 6 Holds, ORCL enjoys a Strong Buy consensus rating. Its 12-month average price target of $245.11 points to an upside approaching 60%. (See ORCL stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.