Oracle Corp (NYSE:ORCL) is a trending stock to watch, but analysts are cautious due to low margins in its Nvidia Cloud business. Senior Managing Director Joseph Terranova believes the stock’s recent gains show euphoria and doubts Oracle’s ability to invest heavily like Amazon or Alphabet.

Analysts are wary of the Oracle-OpenAI deal, as OpenAI is expected to burn $115 billion over four years and not turn a profit until 2030. Despite Nvidia’s $100 billion investment, OpenAI may need over $200 billion in total funding, possibly forcing Oracle to borrow tens of billions for data centers.

ClearBridge Large Cap Growth Strategy is bullish on Oracle Corp (NYSE:ORCL), citing the company’s successful expansion into cloud infrastructure for AI workloads. They believe Oracle’s market share will continue to grow due to its lower-cost data center architecture and profitability in this growth is undervalued by the market.

Read more at Yahoo Finance: Analyst Says Oracle (ORCL) ‘Classic Example’ of ‘Euphoria’