Tech

D.A. Davidson bullish on OpenAI; Oracle and AI software peers eyed for upside

D.A. Davidson upgrades OpenAI to Buy, arguing the AI lab is back on track after strategic missteps and refocusing on ChatGPT and its frontier model. Analyst Gil Luria says OpenAI could monetize its platform with ads to reduce cash burn and is aligning with industry giants like NVIDIA, Microsoft, and Amazon.

📅 February 09, 2026
⏱️ 2 min read
D.A. Davidson bullish on OpenAI; Oracle and AI software peers eyed for upside

Key Takeaways

  • D.A. Davidson upgrades OpenAI to Buy, citing renewed execution around ChatGPT and frontier models.
  • OpenAI could monetize via ads to reduce cash burn and extend runway.
  • OpenAI is aligning with NVIDIA, Microsoft, and Amazon rather than trying to outcompete them.
  • A potential large fundraising round could finance data-center expansion with Oracle as a key partner.
  • Oracle (ORCL) upgraded to Buy with a $180 target, signaling upside from current levels.

People Involved

  • Gil LuriaEquity Research Analyst, D.A. Davidson

Entities Involved

  • OpenAIAI research and deployment company
  • Oracle (ORCL)Cloud/data-center partner and customer
  • NVIDIA (NVDA)AI hardware provider and platform ecosystem partner
  • Microsoft (MSFT)Cloud/AI software partner
  • Amazon (AMZN)Cloud/AI services partner
  • CoreWeaveAI compute provider
  • TikTok USAPotential ecosystem contributor via user base
  • D.A. DavidsonInvestment firm issuing the bullish note

MarketMoodz Analysis

If Luria’s thesis plays out, the near-term catalysts are clear: monetize OpenAI’s platform via ads to shrink cash burn, and finance a data-center expansion through a new fundraising round, with Oracle positioned as a cornerstone partner. That would lift not only OpenAI but its ecosystem peers—NVIDIA, Microsoft, CoreWeave, and Oracle itself—on expectations of stronger platform adoption and revenue paths.

Historically, AI software stocks trade on monetization milestones and capital-raising cycles. The OpenAI-Google dynamic is central: OpenAI could re-enter as a challenger with fresh capital, even as fundraising claims remain speculative. Investors should watch for CNBC quotes, confirm fundraising details, ad rollout progress, and any material Oracle-OpenAI commitments or data-center projects.

Source: Original Article

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