Oracle (ORCL) is facing investor skepticism as its stock has plummeted 55% from its 52-week high, despite the company’s significant investments in artificial intelligence (AI). The tech giant is focusing on building AI infrastructure, which has led to a staggering 66% increase in long-term debt since early 2025. While this debt surge raises concerns, Oracle’s cloud infrastructure revenue soared 84% year-over-year in Q3 2026, indicating that its AI strategy is gaining traction.
The company’s performance obligations backlog has also skyrocketed by 325% year-over-year, reaching $553 billion, suggesting strong customer interest in its AI offerings. While Wall Street remains cautious, the positive reception within the technology sector hints at potential long-term rewards from Oracle’s ambitious AI initiatives.
For market professionals, Oracle’s current stock valuation presents a compelling opportunity. With price-to-sales and price-to-earnings ratios below their five-year averages, it may be worth considering for long-term investment, especially as the AI landscape evolves.
Source: fool.com