Oracle (ORCL) rebounded on renewed AI momentum.

<Fundamentals>
Surging Alphabet (GOOGL) and revived Nvidia (NVDA) stock prices are leading the AI momentum. Oracle (ORCL), which fell over 40% from its high on amplified doubts over its 300 bln USD computing contract with OpenAI, saw a rebound.

Deutsche Bank assessed the drop in ORCL stock as providing an attractive entry point. They valued the current price as reflecting no positives, citing EPS (ex-OpenAI costs) at 17 USD and FCF at 31 bln USD, both below company guidance.

HSBC also issued a Buy rating on ORCL, expecting various financing strategies for data center costs to be announced, thereby mitigating balance sheet burden and diversifying risk.


<Technicals>
ORCL briefly tested the 186.00 low before slightly rebounding. The price remains within the descending channel and below the bearish EMAs, indicating the potential downtrend extension. If ORCL breaches above EMA21 and 220.00, the price could advance toward the next resistance at 250.00.
Conversely, if ORCL fails to close above EMA21, the price may retreat toward the following support at 186.00.