Oracle takes another AI step with Cerner-FDA partnership
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Oracle (NYSE:ORCL) made a new move into the artificial intelligence space on Monday via its Cerner medical technology business and a partnership with the U.S. Food and Drug Administration.
Oracle's (ORCL) said its Cerner Enviza business will work to develop AI tools that will focus on extracting information from clinical notes inside of electronic health records for the FDA's drug safety Sentinel Initiative. Cerner will work along with John Snow Labs on AI technology that will be used to explore the possible mental health side effects related to the asthma drug montelukast, and how machine learning and natural language processing can fill in gaps in data collection.
Last week, Monness Crespi Hardt analyst Brian White said that thanks to moves such as its support for Nvidia's (NVDA) DGX Cloud technology, Oracle (ORCL) is "well positioned" to support the high-performance AI needs of large enterprises that are looking for ways to improve their data collection and interpretation efforts.
Oracle (ORCL) shares slipped by 1.6% Monday. Wall Street analysts currently have a consensus buy rating on Oracle's (ORCL) stock, while Seeking Alpha authors give the company's shares a rating of hold. Seeking Alpha's Quant System, which historically outperforms the stock market, also sees Oracle (ORCL) worthy of a hold rating on its shares.