Oracle (ORCL) Has the AI Demand. Can It Fund the Infrastructure?

Oracle (ORCL) Has the AI Demand. Can It Fund the Infrastructure? Attiya Zainib Mon, August 3, 2026 at 5:31 PM GMT+2 3 min read ORCL CL=F ORCL-PD Janus Henderson Investors, an investment management company, released its "Forty Fund" Q2 2025 investor letter.

A copy of the letter can be downloaded here . The Fund returned 19. 00% in the second quarter of 2026, outperforming the Russell 1000 Growth Index's 16.

74% gain as strong stock selection and an overweight position in healthcare supported results. The firm said resilient economic growth, robust corporate earnings, easing geopolitical tensions that pushed crude oil below $75 per barrel, and continued AI investment supported markets, although the Federal Reserve kept interest rates unchanged as inflation remained elevated. It added that AI-related opportunities remain a key driver of its outlook, noting demand for AI computing power is expected to exceed supply for the foreseeable future, while one portfolio holding reported revenue growth of more than 30% year over year, and another has an AI-related contracted orders backlog exceeding $550 billion.

In addition, please check the Fund's top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, Janus Henderson's Forty Fund highlighted stocks like Oracle Corporation (NYSE: ORCL ). Oracle Corporation (NYSE:ORCL) is a technology company providing cloud infrastructure, databases, and enterprise software solutions to businesses worldwide.

The one-month return of Oracle Corporation (NYSE:ORCL) was -4. 93% while its shares traded between $114. 50 and $345.

72 over the last 52 weeks. On July 31, 2026, Oracle Corporation (NYSE:ORCL) stock closed at approximately $129. 87 per share, with a market capitalization of about $395.

345 billion. Janus Henderson's Forty Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2026 investor letter: Oracle Corporation (NYSE:ORCL) was a relative detractor amid concerns over its capital spending plans. The technology company has emerged as a significant player in the AI market, supported by its close relationships with leading AI and hyperscaler partners.

This has resulted in strong earnings performance and a growing contracted orders backlog that now exceeds $550 billion.  However, the company has faced questions over how it will fund the tremendous capacity buildout required to support this growth. Investors responded favorably earlier this year when Oracle's management team released an equity and debt financing plan that helped address these questions.

Why Knowles (KN) Could Be a Small-Cap Stock to Watch Image by drobotdean on Freepik Oracle Corporation (NYSE:ORCL) is in 40th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 115 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, which was 111 in the previous quarter. While we acknowledge the risk and potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.

If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . Story Continues In  another article , we covered Oracle Corporation (NYSE:ORCL) and shared Night View Capital's views on the company. In addition, please check out our hedge fund investor letters Q1 2026  page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years   Disclosure: None. This article is originally published at  Insider Monkey .