Oracle could emerge as a surprise winner in the AI revolution, with strong revenue growth

From Nasdaq: 2025-06-26 05:35:00

Artificial intelligence (AI) stocks like Nvidia and Palantir have driven market growth, with the AI market set to reach trillions of dollars. Oracle (NYSE: ORCL) could emerge as a surprise winner in the AI revolution, with a long history of revenue growth and success in the cloud and AI sectors.

Oracle’s expansion into cloud services and AI-driven applications has boosted revenue and net income into the billions. With a focus on flexibility and customer service, Oracle’s cloud offerings have attracted significant demand, reflected in its recent quarter’s impressive growth figures.

Oracle’s AI business is thriving, with cloud infrastructure revenue up 52% to $3 billion in a single quarter. The company’s remaining performance obligations (RPO) also surged by 41% to $138 billion, indicating strong future revenue potential. Chairman Larry Ellison noted unprecedented demand for cloud infrastructure, signaling continued growth.

Tech leaders like Nvidia, Meta Platforms, and Alphabet have reported soaring demand for AI-related products and services. Oracle’s valuation at 29 times forward earnings estimates is reasonable for a growth stock, given its strong revenue growth and potential for further expansion in the AI market.

While Oracle may not be in the spotlight like other tech giants, its AI business growth and financial performance suggest it could be a surprise winner in the AI revolution. The Motley Fool’s Stock Advisor team has identified Oracle as a potential investment opportunity, with Oracle’s AI capabilities positioned for future success in a rapidly growing market.



Read more at Nasdaq: Could This Cloud Company Be a Surprise Winner of the AI Revolution?