Missed the AI Boom? These 2 Crushed Stocks Could Be Your Second Chance

• StockStory Top Pick NVDA +1.37% SMCI +1.08%
• ORCL +4.02%

Key Points

• Stocks have been slumping since an AI bubble-induced sell-off began in late October, leaving some stocks significantly below their fair market value. 

• By using the Relative Strength Index, or RSI, investors can gauge when a turnaround could occur for equities that are considered either overbought or oversold.  

• The prices of these two stocks currently sit in oversold territory, while analysts’ 12-month price targets suggest bullish futures.

• Interested in Oracle Corporation? Here are five stocks we like better.

Last month, when concerns about an AI bubble spilled over and sparked a sell-off, stocks spent several weeks in a pullback. However, the fallout adversely affected some equities more than others—even those that have no direct ties to the AI industry.

While a stock being oversold doesn’t imply that it’s undervalued, statistical principles do suggest that a reversion to the mean is increasingly probable, especially for companies with well-established track records, strong income statements and balance sheets, and competitive moats.

→ Missed the AI Boom? These 2 Crushed Stocks Could Be Your Second Chance

And while the term “oversold” can be subjective, technical indicators like the Relative Strength Index (RSI) can paint a better picture of when to expect a potential turnaround from a stock that has seen a runup in price—or, in the case of this article, a sell-off that has resulted in prices being driven down beyond what some would perceive to be fair market value.

As a momentum indicator, RSI helps investors gauge the speed and direction of price movements. Specifically, it uses data points to produce a reading between 0 and 100. Anything above 70 is considered overbought and likely to experience a bearish reversal.

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Conversely, an RSI below 30 is considered oversold, indicating that a stock may experience a bullish reversal in the near term. That’s precisely the case with Oracle (NYSE: ORCL) and Super Micro Computer (NASDAQ: SMCI), both of which present substantial potential upside based on analysts’ 12-month price targets.

Oracle’s Price Correction Was Overdue but Overdone

While known foremost as a cloud software and database company, Oracle has been positioning itself as a major player in the AI industry.

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In September, MarketBeat noted that the company—which has been leveraging its cloud infrastructure and enterprise software to provide tailored AI services and hardware for large-scale AI applications—could be at risk of a sizable correction.

Specific concerns centered around the tech stock’s short-term performance, given that earnings slowed by nearly 15% between the past two quarters. Additionally, despite its annual EPS increasing from the prior year, Oracle’s substantial capital expenditures led to a negative investing cash flow in Q1 2026. That same quarter, the company’s net change in cash and equivalents declined significantly.

From the start of the year through Sept. 15, when MarketBeat cautioned investors of a potential correction, shares of ORCL had gained around 85% year-to-date (YTD). Since then, they have droppednearly 34%. Institutional ownership has fallen to almost 42%.

However, after the recent sell-off, short interest has decreased to just 1.22% of the float, suggesting that the bears have backed off. While the correction was warranted, the result is that it pushed the stock firmly into oversold territory, with its current RSI reading on a one-year chart at 26.19, hinting that a bullish turnaround could be around the corner.

Furthering that argument, 30 of 40 analysts covering ORCL assign it a Buy rating, with the average 12-month price target of $322.26 representing nearly 61% potential upside. Oracle’s earnings are expected to grow 12.20% next year, from $5.00 to $5.61 per share.

Super Micro Has Fallen Alongside Data Centers

Super Micro Computer doesn’t own or operate AI data centers. The company designs, develops, and manufactures high-performance server, storage, and networking solutions for enterprise, cloud, data center, high-performance computing, and edge computing customers.

However, because it’s AI-related, the stock was dragged down along with other leading tech names over the past month. After gaining more than 95% YTD, SMCI has corrected by over 43% since Oct. 8.

The short interest of 15.44% of the float remains relatively elevated, but institutional ownership, at more than 84%, is higher than average. The smart money has been buying far more than selling. Institutional inflows of $6.68 billion over the past 12 months have dramatically exceeded institutional outflows of just $654.44 million.

The stock’s current RSI reading on a one-year chart is 29.51, indicating it is oversold. Meanwhile, only three of 19 analysts covering the stock assign it a Sell rating, and SMCI’s average 12-month price target of $48.38 represents more than 45% potential upside.

When the company reported Q1 2026 earnings on Nov. 4, it missed on the top and bottom lines. But quarterly reports are rear-facing, and lost among the misses was news of $13 billion in new NVIDIA GB300/B300 orders, including SMCI’s largest deal ever.

Super Micro Computer raised fiscal 2026 guidance to at least $36 billion, with Q2 sales forecast between $10 billion and $11 billion. Importantly, SMCI's earnings are expected to grow 19.35% over the next year, from $1.86 to $2.22 per share.

The article "Missed the AI Boom? These 2 Crushed Stocks Could Be Your Second Chance" was originally published by MarketBeat.