Oracle Corporation (NYSE: ORCL) faced a price target cut to $200.00 from $300.00 by DA Davidson, citing concerns over an inflated OpenAI-related backlog and rising credit risks. Analysts noted that the backlog surge was largely driven by OpenAI, raising red flags post-earnings.

The surge in Oracle’s backlog, primarily fueled by OpenAI, has raised concerns among analysts. A clearer picture post-earnings revealed that the majority of the increase was tied to OpenAI alone, casting doubt on Oracle’s overall performance.

As Oracle’s backlog growth becomes more closely scrutinized, concerns over rising credit default swaps (CDS) are emerging. Analysts point out that Oracle’s debt load tied to a single customer with uncertain demand could pose risks to the company’s financial stability.

Despite the potential of Oracle Corporation (NYSE: ORCL) as an investment, analysts believe other AI stocks may offer greater upside potential. An undervalued AI stock with potential benefits from Trump-era tariffs and onshoring trends is recommended for investors seeking opportunities in the sector.

Read more at Yahoo Finance: Analysts Slash Oracle’s (ORCL) Price Target After Backlog Linked Mostly to OpenAI