Oracle's AI Fortress Goes Beyond OpenAI, Analyst Calls Stock ‘Essential'

Oracle Corp. (NYSE: ORCL) stock fell nearly 4% in Monday premarket trading as weakness across technology stocks weighed on sentiment.

However, the premarket weakness comes as some investors remain bullish on Oracle’s longer-term artificial intelligence opportunity.

KKM Financial founder Jeff Kilburg called Oracle an “essential” stock to own as the software giant expands its role in AI infrastructure. Speaking on CNBC Friday, Kilburg pointed to Oracle’s latest quarterly results and growing backlog as evidence of strong demand.

"They beat on so many metrics," Kilburg said. He highlighted remaining performance obligations, or RPO, which he said increased by about $26 billion.