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The artificial intelligence (AI) boom has created massive winners across the market, but it has also added some risks. Massive AI spending, sky-high valuations, and insufficient earnings growth have made investors more skeptical about pure-play AI bets. Accordingly, companies that combine AI exposure with strong fundamentals, predictable revenue, and disciplined execution are becoming increasingly attractive.
Oracle (ORCL) might be one of those rare opportunities that offers a compelling, risk-adjusted way to play the AI trend. ORCL stock is down 11% year-to-date (YTD) and down 49% from its 52-week high of $345.72, compared to the S&P 500 Index's ($SPX) gain of 4% YTD.