We add shares of Oracle Corporation to the High-Quality Capital Appreciation portfolio, replacing shares of NVIDIA Corporation (NVDA 189 *****). Our Buy rating reflects upside tied to ORCL's Infrastructure as a Service (IaaS) business and opportunities for Software as a Service (SaaS) offerings as new Agentic AI use cases emerge, in our view. We are positive on healthy cloud services growth, with ORCL's pipeline growing well ahead of revenue, which will support an acceleration of top-line growth. We are incredibly positive about ORCL's growth trajectory and turnaround strategy, with new deals from major customers that are driving upside to its long-term OCI revenue guidance. We think greater scale from the AI infrastructure build offers considerable margin/EPS/FCF upside in the out years of our forecast period (FY 28 and beyond). We remain positive on ORCL's three major growth pillars (i.e., IaaS, strategic SaaS, and multi-cloud database revenue), as well as more asset-light expansion strategy vs. cloud peers.

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