Oracle Stock Gains As Jefferies Calls DeepSeek Hit 'Overdone', While UBS Stays Cautious: Retail Traders Split

Shares of Oracle Corp. (ORCL) rose by over 2% in mid-day trade on Tuesday after analysts at Jefferies noted that Monday's 14% hit due to DeepSeek-fueled concerns was “overdone.”

According to TheFly, Jefferies analysts think that the launch of DeepSeek is
“part of an ongoing evolution, not revolution.”

The brokerage maintained its ‘Buy’ rating on the Oracle stock with a price target of $220, implying an upside of nearly 36% from current levels.

DeepSeek's efficiency improvements will also improve the return on interest from artificial intelligence (AI) systems.

DeepSeek is said to be 97% more efficient in computing power requirements, costing 50 times less compared to ChatGPT parent OpenAI’s models.

The brokerage expects most hyperscalers are expected to be capacity-constrained, and despite DeepSeek’s launch, the overall demand for AI systems has not changed.

However, analysts at UBS note that DeepSeek’s launch could prove to be “modestly negative” for Oracle.

Retail sentiment on Stocktwits around the Oracle stock was divided, hovering in the ‘neutral’ (49/100) territory, down from ‘bullish’ a day ago. However, message volume witnessed a spike.

ORCL sentiment and message volume January 28, 2025, as of 11:30 am ET | Source: Stocktwits

Meanwhile, one user thinks DeepSeek’s efficiency gains are positive for a company like Oracle, and the possibility that it could own a part of TikTok could also prove to be an added advantage.

Oracle’s stock price has surged nearly 18% over the past six months, while its one-year performance is far better, with gains of over 43%.

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