Oracle (ORCL)'s Going to Bend to the Bond Market's Will, Says Jim Cramer

We recently published 12 Stocks on Jim Cramer’s Radar. Oracle Corporation (NYSE:ORCL) is one of the stocks on Jim Cramer's radar.

Oracle Corporation (NYSE:ORCL) has shaped up to be one of the most important stocks when it comes to AI. Like CoreWeave, the firm has positioned itself as an infrastructure provider to AI software firms. Oracle Corporation (NYSE:ORCL)’s shares are up by a modest 7.5% year-to-date and have dipped by 45% since early September. During this time period, reports have surfaced that have questioned the firm’s ability to timely build its AI data centers for OpenAI. Additionally, analysts have been of a mixed mind, with Goldman Sachs cutting Oracle Corporation (NYSE:ORCL)’s share price target to $220 from $320 on December 12th and keeping a Neutral rating on the shares. In its note, the bank shared that the firm experienced revenue and growth shortfalls in its second fiscal quarter and its recent share price performance was reflective of he fact that Oracle Corporation (NYSE:ORCL)’s capital expenditure is expected to rise in the absence of near-term revenue growth.

As is evident, Oracle Corporation (NYSE:ORCL)’s capital expenditure is the center of focus, and Cramer discussed the expenditure in the context of the bond market:

“I think that Oracle is going to come to its conclusion that, it’s going to come to its senses and realize the bond market won’t let us do anything else.”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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