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While tech giants like Nvidia (NVDA) and Microsoft (MSFT) dominate artificial intelligence (AI) headlines, investors need to look beyond the usual suspects for opportunities in the disruptive space. Fortunately, analysts have identified three compelling yet often overlooked players quietly building powerful moats in AI infrastructure.
These AI players include database veteran Oracle (ORCL), data cloud innovator Snowflake (SNOW), and search technology specialist Elastic (ESTC). The three companies might not be manufacturing flashy AI chips or releasing chatbots, but they aim to solve a critical challenge in AI adoption: managing, processing, and extracting value from vast amounts of data that power enterprise systems.
Let’s examine why Wall Street analysts believe these under-the-radar players could deliver significant returns for investors in 2025 and beyond.
AI Stock #1: Oracle
With a market cap of $456 billion, Oracle is a technology giant that provides enterprise IT infrastructure and cloud computing services. It also offers cloud-based software for business operations, database management systems, and hardware solutions. Over the years, Oracle has transitioned from a database provider to a full-service cloud platform, competing directly with Amazon Web Services (AMZN) and Microsoft Azure (MSFT).
Oracle’s fiscal Q2 earnings showcased strong momentum in its cloud business. While total sales rose 9% to $14.1 billion, its cloud services and license support now account for 77% of the top line. Oracle estimated cloud sales to touch $25 billion in fiscal 2025 as the Oracle Cloud Infrastructure (OCI) segment saw impressive growth, with GPU consumption up 336%.
CEO Larry Ellison emphasized Oracle’s competitive advantage in AI training workloads, citing lower costs and faster performance than competitors. Its remaining performance obligations (RPO) grew 50% to $97.3 billion, with cloud RPO increasing by 80%, indicating strong future revenue potential.
Analysts expect Oracle’s sales to grow from $52.96 billion in fiscal 2024 to $75 billion in 2027. Comparatively, adjusted earnings are forecast to expand from $5.56 per share in 2024 to $8 per share in 2027. If ORCL stock is priced at 35x trailing earnings, it should trade around $280 in mid-2027, up from $163 right now.
Out of the 32 analysts covering ORCL stock, 20 recommend “Strong Buy,” 11 recommend “Hold,” and one recommends “Strong Sell.” The average target price for ORCL stock is $193.63, 20% above current prices.
AI Stock #2: Snowflake
Snowflake’s cloud-based data platform allows companies to centralize all their data in one place, analyze it efficiently, and share insights across the organization. As companies increasingly rely on AI and machine learning, Snowflake’s ability to handle large-scale data processing has become particularly valuable.
Snowflake reported strong Q3 results (ending in October), with product revenue reaching $900 million, up 29% year-over-year. Its remaining performance obligations grew 55% to $5.7 billion, while it maintained a 127% net revenue retention rate. This means existing clients have raised platform spending by 27% over the past 12 months.
Analysts expect Snowflake’s free cash flow to expand from $813 million in fiscal 2024 to $1.5 billion in 2027. Given these stellar growth estimates, SNOW stock is reasonably valued at 35x forward free cash flow.
Out of 41 analysts covering SNOW stock, 26 recommend “Strong Buy,” three recommend “Moderate Buy,” 10 recommend “Hold,” and two recommend “Strong Sell.” The average target price for Snowflake stock is $190.83, 20% above current prices.
AI Stock #3: Elastic
Elastic provides cloud-based search and analytics technology through its Elastic Stack platform. Its core product helps organizations store, search, and analyze large volumes of data in real time, whether it’s text, numbers, or other data types. These solutions are valuable for enterprises implementing AI and machine learning applications that require robust search capabilities.
In fiscal Q2 of 2025 (which ended in October), Elastic reported revenue of $365 million, up 18% year-over-year. Elastic attributed the growth to significant momentum in AI adoption, with generative AI customer commitments nearly doubling from Q1. This included three deals with annual contract values exceeding $1 million. Elastic’s cloud sales now account for 46% of total sales. Moreover, 1,420 customers spend more than $100,000 yearly, while the company’s net expansion rate stood at 112%.
Analysts expect Elastic to expand its free cash flow to $310 million in fiscal 2027, up from $203 million in fiscal 2025. So, priced at 30x forward FCF, ESTC stock is not too expensive.
Out of 25 analysts covering ESTC stock, 17 recommend “Strong Buy,” one recommends “Moderate Buy,” and seven recommend “Hold.” The average target price for ESTC stock is $130.36, 30% above current prices.
