We recently published 12 Stocks on Jim Cramer’s Radar. Oracle Corporation (NYSE:ORCL) is one of the stocks on Jim Cramer’s radar.
Data center and enterprise software provider Oracle Corporation (NYSE:ORCL)’s shares haven’t performed well lately. They are down by 18% over the past year and by 27% year-to-date. Scotiabank lowered the firm’s share price target to $220 from $260 and kept a Sector Outperform rating in February. The bank explained that even though sentiment for Oracle Corporation (NYSE:ORCL)’s shares had weakened, it still believed that the technology company had significant strengths in offering GPUs as a service to AI software companies. UBS also discussed Oracle Corporation (NYSE:ORCL) in February. It cut the share price target to $250 from $280 and kept a Buy rating on the shares. UBS commented that the technology company had provided clarity regarding its funding requirements lately, which could become a catalyst for it. A key worry about Oracle Corporation (NYSE:ORCL), which Cramer has also repeatedly expressed, is the amount of capital it needs to build the infrastructure to support AI computing needs. As Google parent Alphabet’s shares struggled, the CNBC TV host didn’t hold back when discussing Oracle Corporation (NYSE:ORCL)’s financial position:
“It’s one that I still feel, you kind of want to stay away from. When Google is down 25, 30 points today, you don’t reach for Oracle. One has a balance sheet that’s so gorgeous, the other has a balance sheet from hell.”
While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
