Oracle Corporation (NYSE:ORCL)’s shares are among the most troubled in the market when it comes to AI investing. They have been on a wild ride in 2026 and are down by 41% year-to-date after having gained 27% until June 1st. Cramer has also discussed Oracle Corporation (NYSE:ORCL) several times in 2026. For instance, on July 1st, the CNBC TV host remarked that while he could “root for Oracle” and thought “Larry Ellison’s a pretty smart guy,” he didn’t “think it’s working.” In a June appearance, he discussed Oracle Corporation (NYSE:ORCL)’s debt and remarked that levels seemed excessive. However, Cramer added that the stock could function as a ‘springboard.” In his Tuesday appearance on Squawk on the Street, he commented on the high costs of AI infrastructure projects that Oracle Corporation (NYSE:ORCL) was facing:
“In the meantime, remember, in 2022 they bought Cerner, which I think was one of the most colossally stupid acquisitions. Cause, you know, you’re up against Epic, and that’s a private company that’s one of the greatest companies that have ever been created. And I think Cerner could be a write down. And I just think you know, you don’t have Safra, I mean Safra Catz to me was true North. Anytime Safra and would tell me I was on the wrong side of history. So I just think that Oracle’s the one we have to watch.
“Oracle you’re in for a dime you’re in for a dollar. These projects cost a fortune.”
Oracle Corporation (NYSE:ORCL)’s debt levels are a major concern for investors. By July 21st, according to Bloomberg, five-year credit default swaps on the debt had risen by two percentage points to mark an 18-year high. The bump, which precisely sat at 2.03 points, implies that $10 million in debt protection costs $203,000. Recently, S&P Global downgraded Oracle Corporation (NYSE:ORCL)’s long-term debt to BBB- from BBB.
As part of its fiscal fourth quarter earnings release, Oracle Corporation (NYSE:ORCL) outlined that it plans to raise $40 billion through debt and equity financing in 2027. The firm discussed the high cost data center projects that it is currently building. These include the Stargate data center in Texas, which is being built with OpenAI that the firm believes should complete more than 75% of construction objectives in three months.
While the market worries about Oracle Corporation (NYSE:ORCL)’s debt levels, hedge fund sentiment appears to be stable. During Q4 2025, 111 out of 1,041 hedge funds part of Insider Monkey’s database held the shares, and this figure jumped to 115 out of 1,022 funds during Q1 2026. Fisher Asset Management and First Eagle Investment Management held stakes that were worth more than $1 billion. Some funds that added notable positions in excess of $100 million were Balyasny Asset Management and D E Shaw.
While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Jim Cramer Draws the Line on NVIDIA in China: Why National Security Comes First and Jim Cramer Defends His Dell Stance as Investors Complain About Missing Out.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center