Oracle is experiencing strong growth in cloud infrastructure, expected to continue with AI demand

From Nasdaq: 2025-06-17 07:10:00

Oracle (NYSE: ORCL) has seen a surge in revenue, particularly in cloud infrastructure, driven by demand from customers in the AI space. In the most recent quarter, cloud infrastructure revenue grew by 52% to $3 billion, with expectations for even stronger growth in the new fiscal year. Other AI players like Nvidia, Meta Platforms, and Alphabet are also experiencing increased demand, with the AI market projected to reach trillions of dollars in the future.

Oracle’s growth story is backed by solid performance in cloud applications and infrastructure, with double-digit gains and soaring remaining performance obligations (RPO) of $138 billion. The company predicts a total cloud growth rate of over 40% in the next fiscal year, aiming to become the largest and most profitable cloud applications company globally. Oracle’s latest database update, Oracle 23 AI, offers customers the ability to use large language models (LLMs) securely, positioning the company well to benefit from the AI demand.

Despite trading at a record high, Oracle’s valuation at 31x forward earnings estimates reflects the company’s expanded revenue opportunities in the AI space. Analysts believe Oracle stock has room for further growth in the coming quarters and years, making it a potential buy for investors looking to capitalize on the AI boom. Consideration of Oracle’s strong performance and future prospects is essential for investors evaluating whether to invest in the company.



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