Oracle’s stumble hits AI trade, but many remain bullish

The red-hot trade backing artificial intelligence-related stocks has taken a bruising from a disappointing report from Oracle, reigniting concerns about frothy valuations and an AI bubble.

Still, investors say reasons for optimism about AI remain intact, and many are wary about calling a top.

Investors have piled into AI-related companies this year as the technology has taken off, with promises to make Corporate America more efficient.