Artificial intelligence (AI) has taken the world by storm. It is transforming the technology industry through advancing innovation, efficiency, and new opportunities across multiple sectors. Top tech companies such as Amazon AMZN, Microsoft MSFT, and Nvidia NVDA continue to control the stock market.

Aside from these well-known tech stocks, there are a few other undervalued options under $250 that could be valuable additions to your portfolio in 2025. With a market capitalization of $466 billion, Oracle ORCL has been a long-standing player in the tech industry. 

Meanwhile, Goldman Sachs analysts, led by Ryan Hammond, believe platform stocks such as MongoDB MDB could be the “primary beneficiaries of the next wave of generative AI investments.” Let’s see if now is a good time to buy these great tech stocks.

Tech Stock #1: Oracle Corporation

The first tech stock on my list is Oracle Corporation, the largest enterprise-grade database and application software provider. Its products and services include Oracle Database, Oracle Fusion Cloud, and Oracle Engineered Systems, among others. 

The company’s better-than-expected earnings in 2024 boosted investor confidence, leading to a surge in its stock price. The stock soared 60.1% in 2024, outperforming the S&P 500 Index’s SPX gain of 24%. 

The company operates in three segments. The cloud and license segment generates the majority of Oracle’s revenue. It includes Oracle cloud service subscriptions as well as on-premises software license support. The company’s cloud offerings include Oracle Cloud Infrastructure (OCI) Fusion Cloud Applications, among others. The other two segments are hardware, which includes Oracle Engineered Systems, and services, which assist customers in optimizing the performance of their Oracle applications and infrastructure. 

Oracle has integrated AI capabilities into its cloud services and applications, thereby enhancing their functionality and appeal. In the third quarter, total revenue increased 9% to $14.1 billion, with the cloud and license segment up 11% year-over-year. Adjusted earnings per share increased 10% to $1.47. The total remaining performance obligation (RPO), which refers to contracted revenue that has yet to be earned, increased by 49% to $97 billion. 

Oracle also pays dividends, which adds to its appeal to income investors. It yields 0.95%, compared to the technology sector’s average of 1.37%. Its low payout ratio of 19.5% also makes the dividend payments sustainable for now. 

The global cloud computing market is expected to reach $2.29 trillion by 2030. Oracle’s investments in cloud infrastructure and applications position it to benefit from this growth. However, it operates in a highly competitive environment, with rivals such as Microsoft Azure, Amazon’s AWS, and Google GOOGL Cloud, which together account for 63% of the cloud market. Oracle owns just 3% of this market.

Oracle’s prospects are dependent on its ability to implement its growth strategy effectively. Sustained double-digit growth in cloud services is critical to maintaining investor confidence. 

At the end of the quarter, Oracle’s balance sheet showed cash, cash equivalents, and marketable securities totaling $11.3 billion. The company also generated free cash flow of $9.5 billion, which allowed it to effectively manage its debt while funding acquisitions and returning capital to shareholders via dividends. 

While Oracle’s balance sheet remains strong, competitors such as Amazon and Microsoft have significant capital and resources, posing a constant threat. 

Analysts that cover Oracle stock expect its revenue and earnings to increase by 8.9% and 10.7% in fiscal 2025. Revenue and earnings are further expected to grow by 12.5% and 14.5%, respectively, in fiscal 2026. Trading at 23x forward 2026 earnings, Oracle is a reasonable tech stock to buy now, backed by its strong financial performance, competitive advantages, and exposure to high-growth markets. 

What Does Wall Street Say About ORCL Stock?

Overall, analysts’ ratings for Oracle are generally positive, with 20 maintaining a “Strong Buy” or “Outperform” rating out of the 32 analysts covering the stock. Plus, 11 analysts recommend a “Hold,” and one suggests a “Strong Sell.” The average target price for Oracle stock is $193.63, representing potential upside of 16.2% from its current levels. The high price estimate of $220 suggests the stock can rally as much as 32% this year. 

Tech Stock#2: MongoDB

The second on my list is an emerging AI company, MongoDB. With a market cap of $17.3 billion, MongoDB is emerging as a leading name in the database management space. Its business is built around database solutions, with MongoDB Atlas serving as its flagship product, a cloud-based database-as-a-service (DBaaS). Atlas has been deployed on major cloud providers such as AWS, Azure, and Google Cloud, accounting for a majority of MongoDB’s revenue, and has been a key driver of its growth.

MongoDB stock has fallen 36% over the past 52 weeks compared to the broader market’s 24% gain. This dip could be a great buying opportunity, as Wall Street expects the stock to soar this year. 

In the third quarter of fiscal 2025, total revenue increased by an impressive 22% year on year to $529.4 million, with Atlas revenue growing by 26%. The company’s subscription-based revenue model guarantees a consistent stream of recurring income, which increased by 22% in the quarter.

MongoDB offers consulting, training, and implementation services to help businesses make the most of their database solutions. Services revenue increased by 18% to $17.2 million in Q3. Adjusted earnings per share stood at $1.16, an increase of 20.8% from the prior-year quarter.

Compared to $1.68 billion in revenue and EPS of $3.33 in fiscal 2024, management expects fiscal 2025 revenue of $1.975 billion and adjusted EPS of $3.02. Analysts predict that the company’s revenue will increase by 17.6%, but earnings may fall to $3.05, higher than the company’s estimate.

However, in fiscal 2026, the company’s earnings could increase by 9.3% to $3.33 per share, followed by a 17.2% increase in revenue. MDB stock is trading at seven times forward 2026 sales, compared to its five-year historical average of 21x.

What Does Wall Street Say About MDB Stock?

Overall, Wall Street rates MDB stock a “Moderate Buy.” Out of the 32 analysts covering the stock, 22 rate it a “Strong Buy,” three suggest it’s a “Moderate Buy,” five rate it a “Hold,” and two recommend a “Strong Sell.”

The average target price for MDB stock is $378.86, representing potential upside of 62.7% from its current levels. The high price estimate of $430 suggests the stock can rally as much as 84.7% this year. 

On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

More news from Barchart