Jim Cramer Says Oracle “Can Get Lots of Takers for Its Product”

Oracle Corporation (NYSE:ORCL) is one of the stocks that received Jim Cramer’s latest comments. Cramer mentioned the company during the episode and said:

“Now, maybe OpenAI has a revolutionary version of its own product in the works. I, for one, would never write them off. Nor would I say that this news is definitely bad for Oracle, their biggest business partner. I think that Oracle, which builds data centers better than anyone, can get lots of takers for its product. It doesn’t just live or die depending on OpenAI, but it has taken on a lot of debt. Still, if your business is hanging on ChatGPT, it just became more precarious. How about that?”

A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels

Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. In addition, it provides hardware, consulting, and support services. During the November 18 episode, Cramer highlighted the company borrowing a significant sum to build data centers, as he commented:

“Now, co-founder, chairman, and CTO, Larry Ellison, who is brilliant and tough, is back in the driver’s seat. He’s going full tilt. He’s pushing all of his chips, putting, everything’s going to be on AI here… and Wall Street clearly feels a lot worse about that idea than it did just a couple of months ago.

Of course, by the time we got, we get here, we’d already started seeing other cracks in the AI data center story. But the bottom line here, I think the Oracle case is instructive. They’re borrowing a fortune to build data centers for OpenAI, which has about $1.4 trillion in spending commitments that it may or may not be able to afford. That’s why I call it the Achilles heel of this whole thing. No wonder people are worried.”

While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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