Buying the ORCL Dip? Buy These 3 Stocks Too

If you bought the dip on Oracle, or maybe you're just thinking about it, listen, I get it. It's one of the biggest AI stories in the market right now. I'm not here to talk you out of it. However, there is something that might interest you as well. I found three companion stocks in that same trade that could sit right alongside an Oracle position, and one of them carries a price target more than 120% above where it trades today. So, let's briefly go over the situation with Oracle itself and get into those three companion picks. And that does bring us to an important question. Should you actually buy the Oracle dip? Now, chances are if you clicked on this video, you're wondering if you should, or maybe you already did buy the dip on Oracle stock. And again, the logic is sound here. An AI buildout is one of the biggest money-making stories in the market right now. And that's exactly why so many of you are eyeing Oracle's dip in price as your way in. But growth this size costs money. About 55.7 billion dollars in capital expenditures last fiscal year, funded partly with debt, which is why S&P trimmed Oracle's credit rating to BBB- last month. It's growing pains, in other words. It's the kind that show up in the numbers before they show up in the results. Now, our Zen Ratings system runs every stock through a 115 factor review and boils it all down to one intuitive letter grade, an A through an F, just like school. Plus, there's seven component grades that show exactly where the strength or weakness actually is on a stock. Now, Oracle currently earns a C rating, but that's actually more like a C- if we look at it, because it ranks above average in our database of 4,600 stocks, but weighed down by that debt and cash burn. So, its component grades are mostly C's across the board, with the exception of momentum where it earns a D grade. Now, I should clarify that this is not the final verdict. It's a snapshot. Fundamentals just haven't caught up to the ambition yet. Historically, once a stock's grade climbs into a B or even an A territory, that's meant average returns of 17% to 28.5% a year in this system. And that's the upside case for Oracle if the fundamentals turn here. Now, you don't have to wait for that turn to get real exposure to this exact trade. Three companion stocks are already sitting where Oracle's aiming to be. An A and two Bs, and they're worth holding right alongside an Oracle position today. And again, the last one that I'm going to tell you about is a 120-plus% upside potential stock. Now, before I dig into these, I should probably tell you who I am. My name's Jacob Wade. I'm a financial coach that helps high-income earners retire early. And if you like deep-dive stock pick videos just like this one, hit the thumbs-up button below. It lets me know to keep making more videos just like this one. All right, pick number one here is going to be Dell Technologies. Now, this is the company physically building out the AI server racks that hyperscalers, including Oracle, are racing to fill with GPUs. Now, if the AI infrastructure trade means anything to you, Dell already has real skin in the game here. Now, here's the forward-looking case. Dell just raised its own guidance, now expecting around 60 billion in AI server revenue for fiscal year 2027, which is on top of a $51.3 billion AI backlog. That's booked unfulfilled orders, not a hopeful projection here. Now, the real catalyst is on the calendar as well. Dell reports earnings on August 27th, so keep an eye on that. Now, Wall Street backs up this pick. 18 analysts cover this stock, and nearly 78% of them recommend a buy or a strong buy with price targets ranging higher than 50% above where shares sit today. And these aren't nobodies. Within our database of over 5,300 analysts, seven of the analysts covering Dell rank in the top 1% of analysts tracked based on historical stock picking track record. And our Zen ratings model agrees here. Dell earns an A grade amounting to a strong buy recommendation, roughly the top 3% of nearly 4,600 stocks that we track. Now, growth, momentum, and sentiment all come back as an A grade, and momentum alone lands in the top 1%. So, that backs up the strong buy recommendation. Now, I should also mention that this stock is something that our editor-in-chief has discussed in detail during his weekly live trainings. You can join him live every Monday at 7:00 p.m. Eastern Time. It's free, but you do need to register, so just scan the QR code on the screen right here or go to wallstreetzen.com/live to sign up. Now, let's make sure to talk about the risk here. Dell stock is already up more than 200% over the past year, which may have you nervous that there's not much more room to run. However, it's excellent Zen rating and strong backing from smart money crowd indicates that there's still plenty of runway with this company that has a real growing booked backlog behind it. All right, so that's Dell. Let's move on to another stock that has a big upside potential according to the pros, and some analysts believe it could even see over a 50% upside in the coming year. Real quick, if you are getting value from this video, consider subscribing to this channel. We do this kind of grounded data-driven research every single week, and I'd love to have you back for the next video. All right, time for the next stock pick. All right, Taiwan Semiconductor, TSMC. You might have heard of it. Now, Nvidia designs the chips, everybody knows that, but TSMC is the company that actually builds it for Nvidia, for AMD, for Apple, and nearly advanced AI chip on the planet, which puts it right in the middle of this same thing we're talking about here. So, here's the forward-looking case on TSMC. Their advanced packaging process called COWOS or Cowos, the step that physically joins an AI chip to its memory is reportedly sold out through the end of 2026 with lead times into 2027. Now, shares of the stock have actually cooled off over the past month, down about 7% as of the week that I'm recording here, but these things can change fast, so make sure you look at the latest price data on wallstreetzen.com. But, as I'm recording, you're looking at the same growth story at a fresher price than a few weeks ago. Wall Street's also on board here, even if the coverage is a bit thinner than the other two names I'm sharing on this list. We've got five analysts covering Taiwan Semiconductor, and they rate the US-listed shares that the consensus lands on a strong buy with an average target pointing to roughly 30% upside from here, and the high-end estimate over 50%. Now, our Zen ratings model calls it a buy, a B grade, but if you look under the hood at the actual component grades, momentum, sentiment, financials, and its AI factor all come back with A grades. That's four As, more than either of the other two picks tonight, even ones with a better overall letter grade. Now, financials alone lands in the top 3% of every stock that we track. Now, the risk here is one everybody already knows, nearly all of TSMC's most advanced manufacturing sits in Taiwan, a geopolitically sensitive part of the world, and that concentration is the single biggest thing that could derail this story here. But, even so, a stock with this many As under the hood at a discount to where it traded a month ago, it's hard to ignore. Now, before the final pick, the one that I've been teasing all video here with 100-plus percent upside, I do want to remind you again to check out Wall Street Zen's no-cost live training sessions. You can join our editor-in-chief Steve Reitmeister on Mondays at 7:00 p.m. Eastern Time, And he doesn't just talk about the things that he's buying, but how he's actually finding those stocks so you can do the same in the days and weeks ahead. He also shares his trade of the week, combining the best of Zen ratings with his 40-plus years of investing experience. So, again, if you like content like this, if you're looking for good stock picks, and to deep dive into the data, I strongly recommend just pause the video for a second and register for free or by scanning the QR code with your phone right here, or just go to wallstreetzen.com/live and you can sign up. All right, the stock pick with a 120-plus percent upside is Nvidia. Now, you already know that name, right? It makes the GPUs that train and run most of the world's AI models. And it's the most obvious way to play the AI theme here. Now, here's the forward-looking case on Nvidia, and honestly, it's the best one of this video. Nvidia's revenue over the trailing 12 months hit 253.5 billion dollars, or nearly 109% up year over year. And its most recent quarter alone brought in 81.6 billion dollars. Now, management has said it has full confidence in 1 trillion dollars of combined revenue from its Blackwell and upcoming Rubin chip platforms between 2025 and 2027. And Wall Street is as bullish as it gets here. Of the 25 analysts covering the stock, every single one recommends a buy or better. 72% of them are a strong buy recommendation, and the rest is either at a buy. There's zero holds, zero sells here. And the average target points to over 40% upside from here. And the highest target on Wall Street, the one behind the 120-plus number that I opened this video with, sits over 120% from where shares trade today. And our Zen ratings model agrees here. It's got a B grade, a buy recommendation, but it's really more like a B plus as it ranks in the top 7% of stocks in our database and the threshold for the A grade is in the top 5%. So, it's just about there. Now, if we look at the component grades for Nvidia, its financials grade is essentially perfect, right at the top of the entire model. It's AI factor, the read on how central artificial intelligence is to a company's business, lands around the top 12%. But, the risk to know here is the safety grade, which has a D. It's the weakest mark by far, which means this stock moves hard in both directions. This isn't a name to treat as a sleepy holding in your portfolio. But, with zero analysts holding a sell or even a hold recommendation on the most important company in the entire AI trade, it's about as strong a note as I can end this video on. So, here's how I think about all this. Oracle is still a legitimate way to play the AI buildout. It's currently carrying more financial stress than the market really wants to reward and that's reflected by its quant rating. Dell, TSMC, and Nvidia are three other ways into that same trade. The servers actually running the workloads, the foundry building the chips inside of them, and the company designing those chips in the first place. Each one currently is at a buy level Zen rating or better. And again, none of this is a guarantee. Grades change as the data changes and I'll keep tracking all four of these the same way. What I'd actually do here, though, is don't just chase the stock that's falling in price. Look at the whole supply chain benefiting from the same trend and then let the data tell you where the strength actually is right now. Now, I want to hear from you. Are you buying the Oracle dip? Let me know why or why not. I also want to hear what you think of the companion stocks that I suggested here and let me know if maybe you have another one to add to the list. Your comments benefit the entire community here, so just drop them below. And if you want to get four more great stocks to consider adding to your portfolio right now, be sure to check out my four stocks to buy heavy before September video. It's getting a lot of attention right now, so catch it while the trades are still hot. You can check out all the details on this video right here.