Investors have spent months punishing Oracle’s stock in reaction to the company’s pivot to artificial-intelligence infrastructure, but one analyst thinks the company will prove the doubters wrong.

Oracle’s

ORCL economics are “better than we thought,” and the company is actually emerging as a primary beneficiary of the AI build-out, Bernstein analyst Mark Moerdler wrote in a Monday note. Moerdler maintained his outperform rating and $319 price target on the stock, arguing that the long-term value creation happening at Oracle is being overlooked.