Jim Cramer urged investors on Tuesday to view Oracle Corp. ( ORCL ) as a buying opportunity following its post-earnings decline, while cautioning against chasing C3.ai Inc. ( AI ) despite its recent strength.

What Happened: Oracle shares dropped 6.67% on Tuesday after the enterprise software giant reported fiscal second-quarter earnings that missed Wall Street expectations. The company posted adjusted earnings of $1.47 per share on revenue of $14.06 billion, falling short of analysts’ estimates of $1.48 per share and $14.11 billion respectively.

“I’d be a buyer of Oracle after this pullback, because the most important parts of the business are still doing great,” Cramer said on CNBC. He attributed the miss to one-time issues, noting that Oracle’s core cloud infrastructure and AI businesses continue to show strong performance.

Oracle’s management reported that demand continues to outpace supply, highlighting partnerships with prominent tech companies including OpenAI, xAI, Cohere, NVIDIA Corp. ( NVDA ) , and Meta Platforms Inc. ( META ) .

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Why It Matters: However, Cramer expressed caution about C3.ai ( AI ), which saw its stock rise initially after beating quarterly expectations before settling to a 0.12% gain. “If you own it, take something off the table,” he advised, citing concerns about the company’s revenue growth rate and continued losses.

The contrast between the two companies highlights the current market dynamics around AI stocks. While Oracle’s pullback represents an opportunity in a fundamentally strong business, Cramer suggested C3.ai’s rally might be driven more by AI enthusiasm than fundamentals.

RBC Capital Markets analyst Rishi Jaluria maintained a Sector Perform rating on Oracle with a $165 price target, noting that while third-quarter guidance was light, the company’s cloud revenue outlook remains strong at $25 billion for the full year.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.