Jim Cramer Said This AI Stock Has A Clever Technology Chief

Jim Cramer highlighted Oracle Corporation (NYSE:ORCL) as an AI-related stock with a notable technology chief, Larry Ellison. Over the past year, the stock has experienced a decline of more than 50%. Ellison's recent decision to retain a substantial $7.5 billion of shares caused a brief discussion among Cramer and his co-host David Faber.

Oracle Corporation (NYSE:ORCL) reported strong fiscal first quarter earnings, with a backlog surge of $209 billion to $664 billion and significant growth in revenue and profit, largely driven by AI cloud contracts. However, the firm's high debt level, totaling $127 billion, and high capital expenditures, resulting in negative $5.4 billion for Q1, are concerns for its operations.

Ellison's initial plan to sell shares and later reversing his decision adds to the debate on the company's future valuation. Hedge funds remained steady in their Oracle Corporation (NYSE:ORCL) stances, with 119 funds tracking the stock in Q2 compared to 115 in Q1, including significant new investments by Tudor Investment Corp and Tontine Asset Management.