Oracle’s growth rate is expected to accelerate this year, and there’s a good chance that it could revise its revenue estimates upward.
The company expects to sign more multibillion-dollar contracts for its AI cloud infrastructure.
Oracle’s growth potential and premium valuation could take its market cap beyond the $1 trillion mark in the coming year.
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The rapid growth of artificial intelligence (AI) in the past three years has helped quite a few companies enter the trillion-dollar market cap club, including Nvidia, Broadcom, and TSMC. The good part is that the proliferation of AI is still in the early stages.
According to one estimate, the global AI market is likely to clock a compound annual growth rate of nearly 36% through the end of the decade. So, it won’t be surprising to see this technology help more companies enter the club of companies with market caps above $1 trillion. I think cloud giant Oracle (NYSE: ORCL) will be the next company to achieve a trillion-dollar market cap.
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Oracle stock has jumped an impressive 88% in 2025 through Sept. 23 on the back of robust growth in its revenue and earnings. It now has a market cap of almost $877 billion, which means that it is just 14% away from the $1 trillion milestone. This puts Oracle in an ideal position to become the next AI-fueled trillion-dollar company, especially since it has a massive backlog that’s going to help it accelerate growth.
Oracle has raised its fiscal 2026 revenue guidance to at least $67 billion, which would mark an improvement of almost 17% from the prior year. That would be double the growth rate that Oracle clocked in the previous fiscal year. However, there is a good chance of Oracle exceeding this forecast, considering the red-hot demand for the company’s data centers for running AI workloads.
The company’s Oracle Cloud Infrastructure (OCI) business has received a massive boost as companies have been renting data center capacity from Oracle for running AI models and building…
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