Oracle (ORCL) stock has plummeted 36% from its peak due to concerns over aggressive cloud infrastructure expansion. Investors question whether hefty costs will lead to sustained profits amid rising debt. Management expects robust growth from AI and cloud demand, with OCI revenue projected to surge 77% this fiscal year.

Despite the recent decline, Oracle’s AI and cloud infrastructure demand remains strong, with $455.3 billion in remaining performance obligations. Cloud revenue soared 27% to $7.2 billion, OCI revenue surged 54%, and multi-cloud database services spiked 1,529%. Oracle anticipates continued growth with 34 operational multi-cloud data centers and 37 more planned.

Oracle’s bullish outlook predicts significant revenue growth in AI and cloud infrastructure. Analysts rate the stock a “Moderate Buy,” but caution that the current valuation may limit upside potential. The recent pullback could be an entry point for long-term investors, but short-term investors should be wary of volatility until the benefits of AI initiatives materialize.

Read more at Yahoo Finance: Oracle Stock Slides 36%. Should You Buy, Sell, or Hold ORCL?