Will This Titan Be The Biggest Winner of the AI Revolution?

For decades, Oracle was considered something of a tech stalwart, respected, reliable, and, frankly, a little boring. Known for its dominance in database management, Oracle’s steady performance made it a favorite among conservative investors, but rarely the centerpiece of high-growth conversations.

That’s changing, and fast. Thanks to a massive shift in enterprise computing driven by artificial intelligence Oracle is no longer just a database company. It’s becoming one of the fastest-growing cloud infrastructure providers in the market and the numbers from its most recent earnings report prove it.

Key Points

• Oracle’s cloud revenue surged by over 50%, with future commitments hitting almost $140B. Growth is expected to accelerate next year.

• Oracle 23 AI lets firms securely run LLMs on private data, something competitors can’t offer.

• Despite record highs, Oracle trades cheaper than many AI peers, with strong buybacks adding support.

AI Has Supercharged Oracle’s Growth

Last quarter, Oracle’s cloud infrastructure revenue surged by over 50%. That kind of growth doesn’t happen by accident or in a vacuum. It’s being fueled by a seismic increase in demand from AI companies hungry for computing power and data infrastructure.

In fact, during the most recent earnings call, Chairman and CTO Larry Ellison casually dropped what might be the boldest statement in tech this year that Oracle will soon be the largest and most profitable cloud applications company in the world.

Even more audacious? Ellison claimed that Oracle is on track to build more cloud infrastructure data centers than Amazon, Microsoft, and Google combined. That’s not a typo.

While that may sound far-fetched at first, it’s worth noting something most investors overlook. Oracle is partnering with Nvidia and hosting Nvidia’s cutting-edge AI training and inference workloads on its infrastructure. That’s a massive vote of confidence.

The “Oracle 23 AI” Advantage Few Are Talking About

Buried in the details of Oracle’s latest product rollout is something truly unique, a next-generation database called Oracle 23 AI. This isn’t just a typical database upgrade but allows businesses to seamlessly connect large language models to their private data, without moving that data outside the company’s secure environment.

That solves one of the biggest bottlenecks in AI adoption, data privacy. Most companies can’t afford to expose proprietary or sensitive data to public AI models. Oracle’s new system acts like a secure bridge, allowing AI to learn from internal data without that data ever leaving the fortress.

Ellison claims no other system in the world currently offers this capability. If true, Oracle may have just created one of the most valuable moats in enterprise AI.

AI Customers Are Begging for Capacity

Oracle’s AI infrastructure is in such high demand that one customer recently told the company they would take every bit of available capacity, regardless of geography. That’s not normal. It suggests Oracle’s infrastructure may not only be competitive with the likes of AWS and Azure, it might be uniquely better suited for specific high-performance AI workloads.

This demand is already showing up in the company’s backlog. Oracle’s remaining performance obligations, future revenue from signed contracts just jumped 41% to a record of nearly $140 billion. That kind of forward visibility is rare in tech and implies strong confidence from large enterprise customers.

Is Oracle Stock Still a Buy After Hitting Record Highs?

After a near 30% gain so far this year, Oracle stock is trading near all-time highs. At a forward price-to-earnings ratio of over 30x, it may seem expensive especially for a company most investors still associate with legacy IT.

But here’s what matters, Oracle is no longer just a slow-and-steady software vendor. Its transformation into an AI-first, cloud-native infrastructure player justifies a re-rating. When you compare its valuation to other AI beneficiaries like Nvidia, Snowflake, or even Palantir Oracle suddenly looks relatively cheap.

It’s also worth noting that Oracle has been buying back shares at an aggressive pace, reducing the share count and boosting per-share earnings without making headlines. That shareholder-friendly policy could support the stock even in a rocky macro environment.

The Big Takeaway Is…

Oracle has gone from a legacy tech workhorse to a dark horse in the AI race and now it’s starting to look like a front-runner. Between its AI-optimized database, booming infrastructure segment, and massive forward revenue backlog, Oracle is hitting an inflection point that many investors still haven’t fully priced in.

If Ellison is right and Oracle really does outbuild its rivals this could be one of the most surprising and lucrative AI bets of the decade.

So, is Oracle a buy? If you’re looking for a profitable, fast-growing company with serious AI upside and you prefer businesses that already have a track record of execution it might just be one of the smartest plays in tech today.