Jim Cramer Notes Market Unease Over Oracle

Oracle Corporation (NYSE:ORCL) is one of the tech and consumer sector stocks that Jim Cramer talked about. Cramer discussed OpenAI and Oracle’s role in tech spending. He said:

“Behind the scenes, lurked OpenAI, the creative ChatGPT, which, along with Oracle have been… huge drivers of the burgeoning tech spend. For most of 2025, those are the stocks that drove the market higher, and that was the narrative we loved. Lately, though, skeptics have begun to challenge the notion of unlimited data spending. Oracle raised a huge amount of money in the bond market, $18 billion. But there’s now a belief in the market that Oracle may not somehow be money-good for the financing of this massive data center buildout, something that it’s doing largely on behalf of OpenAI. That’s the private company. You can tell because people have been buying credit default swaps on Oracle’s debt like crazy. Now, I do find that somewhat worrisome. I admit it.”

Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. The company also offers hardware, consulting, and support services. During the December 15 episode, Cramer noted that he trusts Larry Ellison but not his biggest client, as he remarked:

“Last week turned brutal for the AI data center stocks when we got this pair of poorly received quarters from Oracle on Wednesday and then Broadcom on Thursday night. Oracle plunged 10.8% the next day. Broadcom dropped 11.4% on Friday. Dragged the whole group down with them… Oracle, I got to tell you, this is a tough one… You got two problems. You got the OpenAI. You got the Oracle balance sheet… What changed when Oracle reported last Wednesday?… Unlike Broadcom, Oracle legitimately disappointed… I trust Larry Ellison, Oracle’s co-founder, chairman, chief technology officer, but I don’t necessarily trust his biggest client, OpenAI, and I worry about the scale of what he’s trying to build here…

Oracle… remains a pretty fraught situation, and the one-two punch of bad news last week only made matters worse. If you want to bet on the data center story, there are a lot of better ways to do it. So here’s the bottom line: Ultimately, I remain positive on the broader AI data center build-out, but there are some increasingly glaring unresolved issues with Oracle, their biggest customer OpenAI, and with the nuts and bolts of mass data [center] construction, they’re all construction, these are all, this is what’s fraught. OpenAI and Oracle. I think you need to be careful with some of these stocks, the ones that don’t have great balance sheets or great credit ratings.”

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