Shares of Oracle have come under sustained pressure in recent months as investors worry about heavy spending on artificial intelligence infrastructure. However, analysts at Bernstein argue that the company’s strategy is likely to deliver significant long-term gains.

Oracle stock (ORCL) jumped over 2.4% today, even as layoffs hit key teams. Investors are not reacting to job cuts alone. They are focusing on Oracles aggressive AI strategy and expanding cloud business.

View Oracle Corporation ORCL stock quote prices, financial information, real-time forecasts, and company news from CNN.

Bank of America just reinstated coverage of Oracle (ORCL) with a Buy rating and a $200 price target. The call comes from analyst Tal Liani, who described Oracle as "a giant going all-in on AI infrastructure and the cloud.

Oracle’s stock has been weighed down by fears of overspending on AI, but Bernstein believes the company’s big bet is on track to pay off

Oracle has had a turbulent stretch heading into this analyst call. Shares are down 24.20% year-to-date and around 55% below their 52-week high of $345.72.

Oracle’s latest quarter did more than beat expectations—it gave bulls fresh evidence that the company’s AI-driven expansion may be more durable, and more self-funded, than skeptics assumed.

Oracle Corp shares are trading lower on Tuesday following reports suggesting that Amazon is developing an AI agent tool to automate some sales, business development and other functions. Reports also suggest that concerns over AI disrupting SaaS business models is one of the drivers behind recent attempts to withdraw funds from private credit funds.

The cloud giant's valuation has become much more reasonable following a brutal sell-off, and its massive backlog suggests brighter days ahead.

Oracle Corporation (NYSE:ORCL) ranks among the best rebound stocks to buy right now. On March 13, Argus reduced its price target for Oracle Corporation (NYSE:ORCL) to $225 from $384 while retaining a Buy rating on the company’s shares.