Oracle's AI Dip: 3 Companion Stocks Worth Buying Alongside It

If you bought the Oracle (ORCL) dip, or you're thinking about it, that makes sense. 

AI buildout is one of the biggest stories in the market right now, and this isn't an argument against Oracle. 

But here's something worth knowing too: three companion stocks sit in that same trade and could pair well with an Oracle position, and one of them carries a price target more than 120% above where it trades today. Let's cover Oracle itself first, then get into the 3 companion picks.

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Should You Buy the Oracle (ORCL) Dip?

Chances are, if you're reading this, you're already asking that question, or you've already bought the dip. The logic holds up: AI buildout remains one of the biggest money-making stories in the market right now, and that's exactly why so many investors are eyeing Oracle's dip as their way in.

But growth this size costs money. Oracle spent about $55.7 billion on capital expenditures last fiscal year and funded a chunk of it with debt, which is why S&P trimmed Oracle's credit rating to BBB- last month. Call it growing pains, the kind that show up in the numbers before they show up in the results.

Our Zen Ratings system runs every stock through a 115-factor review and boils it down into one letter grade, A through F, plus seven component grades that show exactly where the strength or weakness sits.

Oracle currently earns a C rating, though it's really more like a C-minus. It still ranks above average across our database of 4,600 stocks, but debt and cash burn weigh it down. Its component grades run mostly C across the board, with one exception: Momentum, where it earns a D.

To be clear, this isn't a final verdict, it's a snapshot: the fundamentals just haven't caught up to the ambition yet. Historically, once a stock's grade climbs into B or A territory, our system has produced average returns of 17% to 28.5% a year, and that's the upside case for Oracle if the fundamentals turn.

Here's the good part: investors don't have to wait for that turn to get real exposure to this exact trade. Three companion stocks already sit where Oracle is aiming to be, an A and two B's, and each one is worth holding right alongside an Oracle position today. The last one is the same 120%-plus upside stock mentioned above.

Pick #1: Dell Technologies (DELL)

First up: Dell Technologies (DELL). Dell physically builds the AI server racks that hyperscalers, including Oracle, are racing to fill with GPUs. If the AI infrastructure trade means anything, Dell already has real skin in it.

Here's the forward-looking case. Dell just raised its own guidance, now expecting around $60 billion in AI server revenue for fiscal 2027, on top of a $51.3 billion AI backlog, that's booked, unfilled orders, not a hopeful projection. There's a real catalyst on the calendar too: Dell reports earnings again on August 27.

Wall Street backs that up. 18 analysts cover the stock, and nearly 78% of them recommend Buy or 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, 7 of the covering analysts rank in the top 1% based on historical stock-picking track record.

Our Zen Ratings model agrees: Dell earns an A grade, amounting to a Strong Buy recommendation, roughly the top 3% of the nearly 4,600 stocks we track. Growth, Momentum, and Sentiment all come back as A's, with Momentum alone landing around the top 1%.

(Our Editor-in-Chief has also discussed this stock in detail during his free weekly live training. Find the next one at wallstreetzen.com/live.)

Now, the risk. Dell stock is already up more than 200% over the past year, which might make some investors nervous that there's not much more room to run. However, its excellent Zen Rating and strong backing from the smart money crowd indicate there's still plenty of runway, especially with a real, growing, booked backlog behind it.

Now on to another stock with big upside potential according to the pros. Some analysts believe it could see over 50% upside in the coming year.

Pick #2: Taiwan Semiconductor (TSM)

Second: Taiwan Semiconductor (TSM), better known as TSMC. Nvidia designs the chip. TSMC actually builds it, for Nvidia, for AMD, for Apple, for nearly every advanced AI chip on the planet, which puts it right in the middle of this same theme.

Here's the forward-looking case. Customers have reportedly booked out TSMC's advanced packaging process, called CoWoS, the step that physically joins an AI chip to its memory, through the end of 2026, with lead times stretching into 2027. Shares have actually cooled off over the past month, down about 7% as of this writing, but prices move fast, so check the latest data on wallstreetzen.com. Either way, this is the same growth story at a fresher price than a few weeks ago.

Wall Street's on board, even if coverage is thinner than the other two names on this list. 5 analysts rate the US-listed shares, and the consensus lands at Strong Buy, with an average target pointing to roughly 30% upside from here, and a high-end estimate over 50%.

Our Zen Ratings model calls it a Buy, a B grade. But look under the hood: Momentum, Sentiment, Financials, and its AI factor all come back as A's, four A's in total, more than either of the other two picks on this list, even the ones with a better overall letter grade. Financials alone lands around the top 3% of every stock we track.

The risk here is the one everyone 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.

Even so, a stock with this many A's under the hood, at a discount to where it traded a month ago, is hard to ignore.

Before the final pick, the one teased since the start: it's time to reveal that 120%-plus stock from the intro.

Pick #3: Nvidia (NVDA)

And now, the one teased at the very top: Nvidia (NVDA). Everyone already knows the name. It makes the GPUs that train and run most of the world's AI models, and it's the most obvious way to play this exact theme.

Here's the forward-looking case, and it's the best of the bunch. Nvidia's revenue over the trailing 12 months hit $253.5 billion, up nearly 109% year over year, and its most recent quarter alone brought in $81.6 billion. Management has expressed full confidence in $1 trillion of combined revenue from its Blackwell and upcoming Rubin chip platforms between 2025 and 2027.

Wall Street is as bullish as it gets here. Of the 25 analysts covering the stock, every single one recommends Buy or better: 72% at Strong Buy, the rest at Buy, zero Holds, zero Sells. The average target points to over 40% upside from here, and the highest target on the Street, the one behind the 120%-plus number mentioned at the top, sits over 120% above where shares trade today.

Our Zen Ratings model agrees: a B grade, a Buy recommendation, but really it's more like a B+, since it ranks in the top 7% of stocks in our database and the threshold for our highest tier, Strong Buy, is the top 5%.

Looking at the Component Grades, its Financials grade is essentially perfect, right at the top of the entire model. Its AI factor, the read on how central artificial intelligence is to a company's business, lands around the top 12%.

The risk to know: Safety grades out as a D here, the weakest mark by far, meaning this stock moves hard in both directions. This isn't a name to treat as a sleepy holding.

But with zero analysts holding a Sell, or even a Hold, on the most important company in this entire AI trade, that's about as strong a note as there is to end on.

The Bigger Picture

Here's how to frame this. Oracle is still a legitimate way to play the AI build-out. It's just currently carrying more financial stress than the market wants to reward, and our system reflects that with a C. Dell, TSMC, and Nvidia offer three other ways into that same trade: the servers actually running the workloads, the foundry building the chips inside them, and the company designing those chips in the first place. Each one currently earns a Buy-level Zen Rating or better.

None of this is a guarantee. Grades change as the data changes, and we'll keep tracking all four the same way. The takeaway: don't just chase the stock that's falling. Look at the whole supply chain benefiting from the same trend, and let the data show where the strength actually sits right now.

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