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AI stocks are a dime a dozen these days. But there is ONE Artificial Intelligence name you simply CAN’T ignore...Oracle Corp. (ORCL). Look at my MoneyShow Chart of the Day. It shows how shares of the mega-cap AI and cloud computing giant have traded over the last six months. Source: StockCharts (If you want to get more articles and chart analysis from MoneyShow, subscribe to our Top Pros’ Top Picks newsletter here.) See that enormous gap higher on September 10? That 36% one-day surge was the biggest for the stock since 1992. It came after Oracle reported a monumental 359% rise in remaining performance obligations – essentially, future revenue it’s contracted to receive as a result of AI-related deals. ORCL wasn’t the only company to report gigantic contract signings, AI investments, or AI projects back then – or in the weeks since. But its resultant stock surge was so large, it stood out like a sore thumb. In fact, it briefly made Oracle CEO Larry Ellison the richest man in the world – edging out Tesla Inc. (TSLA) CEO Elon Musk by a billion bucks or so. But look at what has happened SINCE then. The stock has notched a series of lower highs. RSI has faded. The 20-day moving average has rolled over and crossed through the 50-day MA to the downside. Most importantly, ORCL has given back ALL its gains since that September day! It’s trading right where it was before Ellison rocked the AI world with his contract news. Plus, we’re seeing similarly disappointing follow-through in other key AI bellwethers – like Microsoft Corp. (MSFT) and Meta Platforms Inc. (META). Whatever you think about the prospects for AI technology, the trading in key AI STOCKS has been disappointing for weeks now. You have to pay attention to that trend shift – and take it into account if you’re investing or trading sector names.
