Top Growth Stocks Poised for Potential Outperformance, According to WarrenAI

Investing.com – Saudi Arabia stocks were higher after the close on Wednesday, as gains in the Industrial Investment, Insurance and Retail sectors led shares higher.

At the close in Saudi Arabia, the Tadawul All Share gained 0.37%.

The best performers of the session on the Tadawul All Share were Saudi Aramco Base Oil Company JSC (TADAWUL:2223), which rose 9.95% or 8.50 points to trade at 93.95 at the close. Meanwhile, Advanced Building Industries Co SJSC (TADAWUL:2240) added 7.85% or 2.66 points to end at 36.54 and Saudi Steel Pipe Company (TADAWUL:1320) was up 4.69% or 1.88 points to 42.00 in late trade.

The worst performers of the session were Development Works Food Co (TADAWUL:6013), which fell 4.62% or 5.30 points to trade at 109.50 at the close. Saudi Fisheries Co. (TADAWUL:6050) declined 3.26% or 2.30 points to end at 68.20 and United Cooperative Assurance Co (TADAWUL:8190) was down 3.16% or 0.12 points to 3.68.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 219 to 111 and 19 ended unchanged.

Shares in Saudi Fisheries Co. (TADAWUL:6050) fell to 5-year lows; losing 3.26% or 2.30 to 68.20. Shares in United Cooperative Assurance Co (TADAWUL:8190) fell to all time lows; losing 3.16% or 0.12 to 3.68.

Crude oil for January delivery was up 1.21% or 0.71 to $59.35 a barrel. Elsewhere in commodities trading, Brent oil for delivery in February rose 1.04% or 0.65 to hit $63.10 a barrel, while the February Gold Futures contract rose 0.57% or 23.95 to trade at $4,244.75 a troy ounce.

EUR/SAR was up 0.36% to 4.38, while USD/SAR unchanged 0.03% to 3.75.

The US Dollar Index Futures was down 0.39% at 98.90.

Investing.com -- Wells Fargo initiated coverage of Oracle with an Overweight rating and a $280 price target in a note on Wednesday, arguing that the company is emerging as a leader in the AI infrastructure boom. 

The bank’s analyst Michael Turrin stated that Oracle is “still early” in an AI-led reacceleration that presents “room to run,” even as shares sit “42% off highs” and trade at roughly 25x FY27 earnings.

According to Wells Fargo, Oracle is positioned to become a “clear market share gainer in infra,” backed by nearly “half a trillion in AI deals already booked” and its “pole position w/ key accts (OpenAI, xAI, Meta, TikTok).” 

The analyst highlights that Oracle Cloud Infrastructure (OCI) is set to scale significantly over the next four years, estimating its share of the cloud market will rise to “~16% of the cloud market by 2029,” up from about 5% in 2025.

A major factor behind that growth is OpenAI’s massive 4.5GW, $300 billion-plus compute contract. 

Turrin writes that he expects OCI numbers to continue to climb, adding that there is further upside from existing “$75B commits from various AI Labs” as well as from OpenAI’s long-term ambition. 

The analyst notes OpenAI only stands at 8GW of its Stargate capacity, far short of its stated target of “250GW capacity by 2033.”

Wells Fargo also points to benefits for Oracle’s higher-margin software division, saying the company “remains the outright leader in data” and is poised to see a “flywheel of adoption toward app layer” as AI services scale.

Wells Fargo argues Oracle’s valuation is reasonable given the “magnitude of AI opp ahead” and the company’s strengthening position in large-scale AI infrastructure.

Investing.com -- Marvell stock earned an upgrade on Tuesday as brokerage Summit Insights said it sees a clear inflection ahead for the company’s data center business, with growth expected to accelerate sharply over the next two fiscal years.

The firm lifted its rating to Buy, arguing that the upcoming topline expansion should outweigh near-term softness and concerns around product-mix pressure.

Marvell expects its data center segment to expand about 25% year-over-year in fiscal year 2027 (FY27), followed by another 40% in FY28.

While Summit analyst Kinngai Chan said expects the chipmaker to benefit from rising port counts, bandwidth increases and a strengthening electro-optical business, he “continues to see risk of lumpy shipments for its AI ASIC programs.”

“Our industry checks, however, lead us to believe that AI capex will only accelerate in the next 2-years and both AI accelerators and interconnectivity will be the largest beneficiary of this capex spend,” he added.

Marvell’s October quarter revenue rose 3.4% sequentially to $2.07 billion, in line with expectations.

Data center sales grew 2% to $1.52 billion, supported by steady electro-optical demand, while Enterprise Networking and Carrier infrastructure rebounded sharply.

Automotive and industrial sales fell following the divestiture of the auto Ethernet unit. Non-GAAP gross margin improved to 59.7% on better mix.

For the January quarter, the company guides to 6% sequential revenue growth, reaching $2.20 billion.

Data center revenue is expected to rise about 9% as custom ASIC demand recovers, alongside continued growth in its electro-optical business.

Gross margin is projected to remain in the 58.5% to 59.5% range due to a less favorable product mix.

Marvell also expects its non-data center businesses to grow around 10% in FY27, contributing to an overall revenue outlook of $9.95 billion, ahead of consensus.

This week, Marvell Technology announced it will acquire semiconductor startup Celestial AI for $3.25 billion and issued an upbeat outlook for the coming fiscal year.

The surge in generative AI has intensified the race among chipmakers to deliver faster, more efficient hardware for large-scale data centers. Marvell and Broadcom have built sizable businesses designing custom chips for major cloud providers, tailoring components to high-performance AI workloads.

By buying Celestial, Marvell gains access to the startup’s photonics technology, which uses light instead of electrical signals to link AI processors with memory. The move strengthens Marvell’s position in a field where it competes with Broadcom and Nvidia.