The US economy has produced the most valuable societies in the world for more than a century. The United States Steel became the first company $ 1 billion in 1901 and 117 years later in 2018, Apple became the first business to achieve $ 1 trillion.
Apple remains the largest company in the world with a market capitalization of $ 3.3 trillion. Since 2018, however, it has joined several other US organizations at the Billion Dollars, including Microsoft, Nvidia, Amazon, Alphabet, Meta platformand Berkshire Hathaway. Tesla and Broadcom They were also members until they recently suffered a sharp drop in stock prices.
I think one company has the potential to exceed $ 1 trillion in the coming years. Soothsayer(NYSE: ORCL) It operates some of the best data center for the development of artificial intelligence (AI) and management leadership suggests that this part of its business could grow in the long term.
Oracle has been awarded $ 403 billion since this writing, so investors who buy stocks today could earn an incredible 148% profit if they join the club $ 1 trillion.
Image source: Getty Images.
Two key phases are involved in developing AI model: training phase It is when the developer feeds the model mountains from which to learn, and the inference phase is when the model receives inputs from users and generates answers (like communicating with chatbot). Both require a significant amount of computing power and most developers get it from companies like Oracle.
Oracle runs some of the best AI data centers in the world. They are equipped with state -of -the -art graphic processing units (GPU) from leading suppliers such as Nvidia and Advanced micro deviceswhich are chips designed specifically for AI workload. In fact, Oracle currently builds a 64,000 GB200 GB200 GB200 NVIDIA Blackwell GPU – not just the strongest chip in this industry right now, but this will also be one of the largest clusters offered by any data center operator.
If developers have access to multiple chips, they can process more data, faster, and thus deploy much “smarter” AI models. However, Scale is not the only advantage of Oracle, because its proprietary network technology with random direct access (RDMA) allows data to move from one point to another much faster than the traditional Ethernet network. Because developers usually pay for computing capacity within a minute, this may result in considerable cost savings.
Oracle opened his 101. In fact, Larry Ellison said that the use of GPUs for AI training purposes has risen 244% over the last 12 months and the company also sees the “huge” demand for inference workload.
NVIDIA CEO Jensen Huang thinks that the new generation AI models, which spend more time “thinking” before rendering the answer, will consume 100 times more computing energy than their predecessors. As a result, the demand for the capacity of the data center for the inference work load is merely warming up, so it is no wonder that Oracle wants to expand its track to 1,000 to 2,000 cloud areas in the long term.
In other words, Oracle can eventually have more than 10 times more data centers than today.
Oracle generated total revenue in the third quarter of the fiscal year of 2025 of $ 14.1 billion, but the Oracle Cloud Infrastructure segment (OCI) (which is the company responsible for data centers AI) was only $ 2.7 billion from that issue.
However, although Oracle's total income increased by only 6%year -on -year, the ECC revenues increased by 49%, making it the fastest growing part of the whole organization. OCI's business would grow even faster if it had enough data centers to satisfy demand, and therefore the company expects to increase revenue growth significantly as soon as more online capacity comes.
Oracle Safra Catz CEO expects OCI income to increase by more than 50% for the fiscal year 2025 all year (ending in May 31), with an even faster growth rate in the Fiscal 2026 cards.
In order to insert the remaining Oracle's future potential (RPO) liabilities (RPO) increase the remaining performance of the company (RPO) during the third quarter. RPOs are an pending order that is expected to be converted to income in the future, and Larry Ellison said that demand for AI training capacity and inference workload was a large Q3.
Oracle has generated $ 4.26 in profit per share (EPS) for the last four quarters, which puts its shares on the price ratio (P/E) 33.8. This is about the same level as the valuation of other cloud companies AI such as Microsoft and Amazon, so stocks do not necessarily have cheap or expensive:
However, the estimate of Wall Street's consensus (provided by Yahoo!) suggests that Oracle could deliver $ 6.78 in EPS during the fiscal year of 2026 (which starts in June 2025). This will place its supplies to the ratio of P/E only 21.1, which means that next year it would have to increase by 59%to maintain its current P/E ratio of 33.8.
If this scenario takes place, it would increase the Oracle award to $ 640 billion. From there, the company could reach 1 trillion club $ within five years, if it increases EPS annually by only 9.3%. I think it is very achievable for two reasons: first, the estimated EPS company for the fiscal year 2026 represents growth of 13%and secondly, leadership predicts the growth of income led by OCI.
Oracle data centers are strongly relying on automation that reduces working and other operating costs. As a result, society expects that increasing profit margins, how OCI's business continues to increase, which will generally increase its EPS. Remember that Oracle plans to expand the trail of your data center more than tensor Hence that could lead to the growth of explosive yields in the long term.
Therefore, I think Oracle has a clear way to join the club of $ 1 trillion in the coming years, and his shares could be a great addition to any diversified portfolio.
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Randi Zuckerberg, a former market development director and Facebook spokesperson and the sister CEO of META Platforms Mark Zuckerberg, is a member of the Board of Directors of Motley Beble. John Macay, former CEO of Whole Foods Market, a subsidiary Amazon, is a member of the Board of Directors of Motley Beble. Suzanne Frey, Executive Director of Alphabet, is a member of the Board of Directors of Motley Beble. Anthony di pizio He has no position in any of the above shares. Motley Beble has positions and recommends advanced micro devices, alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platform, Microsoft, Nvidia, Oracle and Tesla. Motley Foll recommends Broadcom and recommends the following options: Long January 2026 395 $ call on Microsoft and short January 2026 405 405 calls on Microsoft. Motley fool has Publication policy.
