Intel and Oracle are two AI stocks that are better bargain buys than Nvidia right now. While Nvidia has seen significant growth and success in the AI chip market, Intel and Oracle offer more affordable options that stand to benefit from the increasing demand for AI products and services.
Intel, a longtime leader in the central processing unit market, has recently focused on AI and launched new AI products like the Intel Core Ultra mobile processor family. The company’s Gaudi 3 AI accelerator is cheaper and more efficient than Nvidia’s top-selling product, presenting an opportunity for Intel to gain market share. Additionally, Intel aims to become a major revenue driver by opening its chip manufacturing network to others.
On the other hand, Oracle has shown impressive growth in the cloud market, with its total cloud revenue surpassing license support revenue for the first time. Customers are drawn to Oracle’s variety of cloud services, including its multi-cloud options and lower prices compared to competitors. Oracle’s accelerating demand and revenue growth are evident in its recent earnings reports, with the company expecting double-digit revenue growth for the full year.
Both Intel and Oracle offer attractive investment opportunities in the AI sector, with Intel trading at 28 times forward earnings estimates and Oracle at 23 times forward earnings estimates. As these companies continue to expand their AI offerings and capitalize on growing demand, investors may benefit from their exciting growth stories.
