Oracle Corporation (NYSE:ORCL) is currently a focus in the AI stock market, especially after DA Davidson cut its price target from $300 to $200 while maintaining a “Neutral” rating. Analysts expressed concerns over Oracle’s backlog, which surged predominantly due to OpenAI-related activities. This raised skepticism, as the surge indicated an over-reliance on a single customer’s commitments. Following Oracle’s earnings report on September 9, it became evident that OpenAI’s engagement was inflated, prompting fears about Oracle’s financial stability. Analysts noted the implications of rising credit default swaps, indicating market apprehension regarding Oracle’s debt, linked to uncertain demand from OpenAI. While Oracle shows potential as an investment, there are other AI stocks perceived to offer better upside with lower risks. For insights on undervalued AI stocks benefiting from economic trends, consider exploring our free report on top short-term AI investments.
For further updates, check out our list of hot AI stocks.
Source link
