Oracle’s stock is totally misunderstood and should be a ‘go-to’ AI play, says this analyst

Oracle's stock has been under scrutiny lately, with investors expressing concerns over the company's ability to compete in the rapidly evolving artificial intelligence (AI) landscape. However, Bernstein analyst Mark Moest thinks that these concerns are overstated and that Oracle is well-positioned to benefit from the growing demand for AI solutions.

Moest's optimism is based on his assessment that two key investor concerns will soon subside. Firstly, he believes that Oracle's cloud infrastructure business will continue to gain traction, alleviating worries about the company's ability to keep pace with larger cloud players. Secondly, he thinks that Oracle's recent investments in AI and machine learning will start to bear fruit, driving growth and profitability.

For fund managers, Oracle's potential as an AI play is worth watching, particularly in the context of the broader market trend towards cloud-based solutions and AI adoption. As the AI landscape continues to evolve, investors will be closely monitoring Oracle's progress in this area. To watch next: Oracle's upcoming earnings report and any further announcements on its AI and cloud strategies will be key indicators of the company's momentum and potential for growth.

Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.