This article first appeared on GuruFocus.

Oracle (NYSE:ORCL) received a lower price target from BMO Capital despite another explosive quarter for its cloud infrastructure business, highlighting a growing investor tension around the AI trade: revenue and backlog are surging, but the economics of delivering that growth remain under scrutiny. BMO analyst Keith Bachman cut his Oracle target to $195 from $220 while maintaining an Outperform rating.

BMO pointed to several positives following Oracle’s fiscal first-quarter results, including operating cash flow, operating margins and a reasonable sequential increase in remaining performance obligations. But the bank flagged the sequential…