Oracle: On the Way to Becoming a Trillion-Dollar Company?

In recent years, companies have significantly increased their valuations through opportunities in Artificial Intelligence (AI). Currently, there are seven firms with a valuation of approximately one trillion dollars or more. With a continuously growing economic environment and the potential of AI to further drive stock prices, many more companies could join this exclusive club in the future. Oracle, a currently underestimated company in the heated AI sector, could soon be part of it as well. Although Oracle is currently valued at $470 billion, still far from the trillion-dollar mark, the company could reach this threshold by the end of the decade. Oracle is known for its stable database solutions. However, the company has so far shown only single-digit growth, even as investments in AI increase. To remain attractive to growth investors and double its valuation, Oracle must significantly accelerate its growth rate. Companies investing in AI chips and new technologies inevitably require more infrastructure and database systems for data processing and analysis, with Oracle playing a critical role here. In addition, Oracle offers more than 50 role-based AI agents through its Fusion Cloud Applications Suite, which can automate business processes and enhance client productivity. A recently concluded contract with Amazon could also significantly contribute to the growth strategy, as Oracle’s database software is now available via Amazon Web Services. This strategic partnership fuels further growth. In the first quarter of fiscal year 2025, Oracle already recorded a 53% year-over-year increase in its remaining performance obligations. Shareholders benefit from an exceptional price increase of 61% this year, although an increase of about 111% would still be necessary to reach the trillion-dollar mark. Against the backdrop of Gartner estimates that by 2026, approximately 80% of companies will be using generative AI, it seems very likely that Oracle could seize these opportunities and outperform the market. The path to a trillion-dollar valuation could rather be a matter of timing. Oracle currently seems to be a promising choice in the AI sector—there is little doubt that the company will ascend to the trillion-dollar club if it capitalizes on the current opportunities.