To The Moon

When people talk about the next trillion-dollar tech giant, $Oracle(ORCL)$ isn’t usually the first name that comes to mind. Yet, this enterprise stalwart is quietly assembling the pieces for a major leap forward. With a current valuation of around $403 billion, Oracle’s aggressive expansion into AI and cloud computing could soon make it a heavyweight contender. Let’s break down why this database veteran may be one of the most underrated growth stories in tech today.

AI Infrastructure: Oracle’s Not Here to Out-Amazon Amazon

Many investors wrongly assume that Oracle is trying to go head-to-head with AWS or Azure in the cloud wars. That’s not the play here. Instead, Oracle is strategically positioning itself as the go-to provider for high-performance AI computing—a niche that’s set to explode.

Oracle’s AI cloud: Where speed, intelligence, and innovation collide

One of its most significant moves? A game-changing partnership with $NVIDIA(NVDA)$ to build an AI supercluster powered by 64,000 Blackwell GB200 GPUs. This isn’t just another cloud expansion; it’s a full-fledged bid to dominate AI-specific workloads. Add to this Oracle’s proprietary RDMA networking technology, which vastly outperforms traditional Ethernet networks, and you have a serious contender in the AI arms race. Faster data movement means lower costs for AI developers, making OCI (Oracle Cloud Infrastructure) a compelling alternative to the cloud giants.

With AI models becoming more sophisticated by the day, demand for computing power is set to skyrocket. And as more enterprises seek cost-effective, high-performance AI solutions, $Oracle(ORCL)$ could find itself at the centre of a lucrative, fast-growing market.

The Autonomous Database: Self-Repairing, Self-Securing, and Almost Self-Sufficient

Oracle’s core database business remains a cash cow, but what many don’t appreciate is just how powerful its autonomous database has become. This isn’t just another cloud database—it’s a self-driving system that eliminates human error, optimises performance, and slashes operational costs.

For businesses managing vast amounts of critical data, mistakes can be costly. Oracle’s autonomous database not only reduces these risks but also locks customers into its ecosystem. Once an enterprise adopts a system that automatically tunes, repairs, and protects itself, why would they switch? The friction of change is simply too high.

Think of it as hiring a butler who not only cooks, cleans, and organises your life but also anticipates your needs before you even realise them. And unlike a human butler, this one doesn’t need holidays or make mistakes.

The Enterprise Grip: Where Else Would They Go?

Oracle’s greatest strength is often overlooked: its deep entrenchment in enterprise IT. For decades, businesses have relied on Oracle for databases, software, and cloud services. The cost of switching away is prohibitively high, making Oracle one of the most formidable players in enterprise tech.

This isn’t just about inertia—it’s a masterclass in cross-selling. Once Oracle gets a foothold in a company, it has endless opportunities to upsell cloud services, security solutions, and AI-powered applications. The strategy is simple yet highly effective: provide a full-stack solution that makes it inconvenient to go elsewhere. And with AI integration becoming essential for businesses, Oracle’s existing customers will likely turn to it first.

The Numbers Game: Strong Growth with More in the Pipeline

Financially, $Oracle(ORCL)$ is demonstrating strong momentum. In the fiscal 2025 third quarter, revenue grew by 6% year-over-year to $14.1 billion, while OCI revenue surged by an impressive 49% to $2.7 billion. However, the real kicker is Oracle’s backlog of contracts, which soared by 63% to a record $130 billion.

This signals two things: First, Oracle is struggling to meet demand—a good problem to have. Second, its revenue growth isn’t just a one-off; it has a pipeline of committed business that suggests sustained expansion.

Segment-level growth underscores Oracle’s unstoppable AI and cloud momentum

Wall Street analysts expect Oracle to post earnings per share of $6.78 in fiscal 2026, putting its forward P/E ratio at a modest 21.1. Given its history of strong margins and the rising demand for AI-specific infrastructure, this valuation could prove to be a bargain.

Trillion-Dollar Trajectory: Possible but Not a Gimme

For Oracle to break into the trillion-dollar club, it needs to grow its market cap by roughly 150%. Is that feasible? Potentially, if it can maintain its current valuation multiples while growing earnings at a steady clip.

Assuming a forward P/E of 33.8 (its current level), Oracle would need to generate around $29 billion in annual earnings to hit the magic trillion-dollar mark. With its data centre expansion, surging AI demand, and deep enterprise roots, that level of profitability isn’t out of reach within the next five to six years.

caling the digital skyline—Oracle’s ascent to tech’s trillion-dollar summit

The Verdict: A Smart Bet on AI Infrastructure?

So, is Oracle a strong buy? For long-term investors looking for AI exposure without the volatility of unproven startups, Oracle offers an attractive risk-reward profile. Its enterprise dominance, AI-powered cloud strategy, and strong financials make it a compelling investment case.

However, execution risks remain. Rapid data centre expansion is capital-intensive, and competition in AI computing is heating up. That said, $Oracle(ORCL)$ isn’t trying to win a popularity contest—it’s playing a calculated, strategic game. And as AI adoption accelerates, its unique positioning could make it one of the biggest surprises in the next wave of trillion-dollar companies.

After all, sometimes the quietest climbers make the most surprising ascents.

@TigerStars @Daily_Discussion @Tiger_comments @Tiger_SG @Tiger_Earnings @TigerClub @MillionaireTiger @TigerWire