Jim Cramer Says Oracle Has "Ridden the AI Data Center Wave to Achieve Tremendous Gain"

Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer recently provided insights on. Cramer noted the stock’s tremendous rally over the last three years. He commented:

“My number two favorite is Oracle at 4:1, current market cap just over $800 billion. If I were making these odds based solely on momentum, Oracle would be the overwhelming favorite to be the next trillionaire, as it’s ridden the AI data center wave to achieve tremendous gain. This stock is up 274% over the past three years, including a 69% gain year to date. A big chunk of that comes just since Oracle announced a massive cloud deal with OpenAI last month. If the stock can keep up its recent momentum, then I think it would hit the trillion-dollar finish line pretty darn soon. But I don’t have Oracle as the absolute favorite frankly, because I think there should be some recognition of the risk that these guys are taking.

At this point, basically, all of the major players in the AI data center trade, from Nvidia to Broadcom to AMD to CoreWeave, are taking a risk in that they’re assuming OpenAI will be good for the massive amounts of money it’s committed to spending and no one has more exposure to that than Oracle, which is expecting to get 60 billion per year from OpenAI in their five year deal. Wow. Everyone in the industry seems to think OpenAI will be good for the money, but no one needs them to be good for like Oracle does.”

Oracle Corporation (NYSE:ORCL) provides cloud-based software, infrastructure, and hardware solutions for enterprise IT.

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Disclosure: None. This article is originally published at Insider Monkey.