Oracle (ORCL) faces a challenge that many fast-growing AI companies are facing now. As demand for AI keeps increasing, Oracle has invested heavily to expand its AI infrastructure. But so far, Oracle hasn't turned these investments into revenue, profits, or cash while keeping spending in check. This is where investors are starting to lose patience and selling off the most heavily indebted AI stocks.
Nonetheless, a majority of the analysts covering Oracle stock still believe it is a “Strong Buy” and expect the stock to rebound to $400. Here’s why.