Is This AI Stock Poised to Join the $1 Trillion Club by 2028?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 12 2025
0mins
Should l Buy ORCL?
Source: Fool
Oracle's Growth and Market Potential: Oracle's shares have surged nearly 74% in 2025, driven by high demand for data center capacity and a significant increase in remaining performance obligations (RPO) to $455 billion, indicating strong future revenue potential.
Cloud Infrastructure and AI Database: The company plans to expand its multicloud data centers and expects Oracle Cloud Infrastructure revenues to grow significantly, with the recently launched AI Database poised to enhance AI adoption among enterprises.
Financial Health and Projections: Despite a high debt load of approximately $112 billion, Oracle maintains investment-grade credit ratings and expects revenue growth of 16% year-over-year in fiscal 2026, with a target market capitalization of $1 trillion by 2028.
Strategic Focus for Success: To achieve its ambitious market cap goal, Oracle must effectively convert its backlog into revenue, manage its debt, and improve profitability while maintaining a strong forward price-to-earnings ratio.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ORCL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 157.160
Low
180.00
Averages
309.59
High
400.00
Current: 157.160
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Air Force Awards Oracle $88M Contract for Cloud Services
- Contract Value: The U.S. Air Force has awarded Oracle an $88 million firm-fixed price task order to provide Oracle Cloud Infrastructure services for the Air Force Cloud One program, enhancing security and performance across multiple classification levels.
- Cloud One Program: This initiative offers Department of Defense customers the opportunity to leverage OCI, ensuring mission owners can meet boundary protection needs while enhancing overall security through the Secure Cloud Computing Architecture.
- AI Database Utilization: The task order enables users to utilize Oracle AI Database 26ai on OCI to securely combine organization-specific and public information, generating sophisticated answers and autonomously executing actions during agentic AI workflows.
- Project Timeline: Work under this task order will be performed at contractor-designated facilities throughout the United States and is scheduled to run through December 7, 2028, indicating Oracle's long-term collaboration potential within the Defense Information Systems Network.
See More
Oracle Cloud Selected by CMS for Key Migration
- CMS Cloud Migration Selection: The Centers for Medicare & Medicaid Services (CMS) has chosen to migrate select on-premises workloads to Oracle Cloud Infrastructure (OCI) as part of an IT modernization effort, which is expected to enhance system performance and scalability while achieving cost efficiencies.
- Technical Support and Migration Planning: Oracle will provide migration planning and technical support to CMS during the transition to the new environment, which not only strengthens Oracle's competitiveness in the federal cloud market but may also attract more government clients.
- Stock Price Volatility and Market Reaction: Although the initial announcement boosted Oracle's stock price, it currently trades below both the 20-day and 100-day simple moving averages, indicating long-term weakness, with a 9.37% decline over the past 12 months.
- Analyst Ratings and Targets: Oracle's stock carries a 'Buy' rating with an average price target of $297.36, and despite the current low stock price, analysts remain optimistic about its growth prospects, suggesting an 87% upside potential worth noting.
See More
Bloom Energy Stock Soars 497%: Opportunities Ahead
- Surging Market Demand: Bloom Energy's stock has surged 497% over the past year, primarily due to significant deals with hyperscalers and utility providers, showcasing its robust capability to meet the growing energy needs of data centers.
- Strategic Partnership Driving Growth: The $5 billion strategic partnership with Brookfield Asset Management enables Bloom to offer energy-as-a-service across Brookfield's trillion-dollar infrastructure portfolio, driving its product backlog to $6 billion, reflecting strong market demand.
- Production Capacity Expansion: Bloom Energy plans to double its production capacity from 1 GW to 2 GW by the end of 2026, and successfully delivered products to Oracle in just 55 days, far exceeding its 90-day promise, further solidifying its market position.
- Future Earnings Outlook: Despite Bloom Energy's high valuation, analysts project its EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong growth potential in the coming years.
See More
Bloom Energy Stock Soars on Surge in Demand
- Backlog Growth: Bloom Energy's product backlog surged by 60% in Q4 to $6 billion, bringing total backlog to $20 billion, indicating a robust market position amid soaring energy demands from data centers.
- Strategic Partnership: The $5 billion partnership with Brookfield Asset Management enables Bloom to provide energy services across its trillion-dollar infrastructure portfolio, further solidifying its leadership in the energy market.
- Capacity Expansion: Bloom plans to double its production capacity from 1 GW to 2 GW by the end of 2026, raising its 2026 revenue guidance from $3.1 billion to $3.3 billion, reflecting strong confidence in future growth.
- Optimistic Market Outlook: Despite a high P/E ratio of 107, analysts project EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong electricity demand growth in the coming years.
See More
Oracle Corporation Faces Class Action Lawsuit
- Class Action Initiated: Pomerantz LLP has announced a class action lawsuit against Oracle Corporation, alleging that its executives made false or misleading statements regarding securities fraud and other unlawful business practices, undermining investor confidence.
- Capital Expenditure Risks: The lawsuit claims that Oracle's AI infrastructure strategy will lead to massive increases in capital expenditures without corresponding near-term revenue growth, posing serious risks to the company's financial health.
- Stock Price Volatility: Following analysts downgrading Oracle's rating and setting a $175 price target, Oracle's stock price fell over 5% within days, reflecting market concerns about its future revenue prospects.
- Poor Financial Results: Oracle's financial report for Q2 FY 2026 revealed revenue growth below analyst expectations, capital expenditures exceeding forecasts, and negative free cash flow exceeding $10 billion, further exacerbating investor disappointment.
See More
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
See More
U.S. Air Force Awards Oracle $88M Contract for Cloud Services
- Contract Value: The U.S. Air Force has awarded Oracle an $88 million firm-fixed price task order to provide Oracle Cloud Infrastructure services for the Air Force Cloud One program, enhancing security and performance across multiple classification levels.
- Cloud One Program: This initiative offers Department of Defense customers the opportunity to leverage OCI, ensuring mission owners can meet boundary protection needs while enhancing overall security through the Secure Cloud Computing Architecture.
- AI Database Utilization: The task order enables users to utilize Oracle AI Database 26ai on OCI to securely combine organization-specific and public information, generating sophisticated answers and autonomously executing actions during agentic AI workflows.
- Project Timeline: Work under this task order will be performed at contractor-designated facilities throughout the United States and is scheduled to run through December 7, 2028, indicating Oracle's long-term collaboration potential within the Defense Information Systems Network.
See More
Oracle Cloud Selected by CMS for Key Migration
- CMS Cloud Migration Selection: The Centers for Medicare & Medicaid Services (CMS) has chosen to migrate select on-premises workloads to Oracle Cloud Infrastructure (OCI) as part of an IT modernization effort, which is expected to enhance system performance and scalability while achieving cost efficiencies.
- Technical Support and Migration Planning: Oracle will provide migration planning and technical support to CMS during the transition to the new environment, which not only strengthens Oracle's competitiveness in the federal cloud market but may also attract more government clients.
- Stock Price Volatility and Market Reaction: Although the initial announcement boosted Oracle's stock price, it currently trades below both the 20-day and 100-day simple moving averages, indicating long-term weakness, with a 9.37% decline over the past 12 months.
- Analyst Ratings and Targets: Oracle's stock carries a 'Buy' rating with an average price target of $297.36, and despite the current low stock price, analysts remain optimistic about its growth prospects, suggesting an 87% upside potential worth noting.
See More
Bloom Energy Stock Soars 497%: Opportunities Ahead
- Surging Market Demand: Bloom Energy's stock has surged 497% over the past year, primarily due to significant deals with hyperscalers and utility providers, showcasing its robust capability to meet the growing energy needs of data centers.
- Strategic Partnership Driving Growth: The $5 billion strategic partnership with Brookfield Asset Management enables Bloom to offer energy-as-a-service across Brookfield's trillion-dollar infrastructure portfolio, driving its product backlog to $6 billion, reflecting strong market demand.
- Production Capacity Expansion: Bloom Energy plans to double its production capacity from 1 GW to 2 GW by the end of 2026, and successfully delivered products to Oracle in just 55 days, far exceeding its 90-day promise, further solidifying its market position.
- Future Earnings Outlook: Despite Bloom Energy's high valuation, analysts project its EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong growth potential in the coming years.
See More
Bloom Energy Stock Soars on Surge in Demand
- Backlog Growth: Bloom Energy's product backlog surged by 60% in Q4 to $6 billion, bringing total backlog to $20 billion, indicating a robust market position amid soaring energy demands from data centers.
- Strategic Partnership: The $5 billion partnership with Brookfield Asset Management enables Bloom to provide energy services across its trillion-dollar infrastructure portfolio, further solidifying its leadership in the energy market.
- Capacity Expansion: Bloom plans to double its production capacity from 1 GW to 2 GW by the end of 2026, raising its 2026 revenue guidance from $3.1 billion to $3.3 billion, reflecting strong confidence in future growth.
- Optimistic Market Outlook: Despite a high P/E ratio of 107, analysts project EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong electricity demand growth in the coming years.
See More
Oracle Corporation Faces Class Action Lawsuit
- Class Action Initiated: Pomerantz LLP has announced a class action lawsuit against Oracle Corporation, alleging that its executives made false or misleading statements regarding securities fraud and other unlawful business practices, undermining investor confidence.
- Capital Expenditure Risks: The lawsuit claims that Oracle's AI infrastructure strategy will lead to massive increases in capital expenditures without corresponding near-term revenue growth, posing serious risks to the company's financial health.
- Stock Price Volatility: Following analysts downgrading Oracle's rating and setting a $175 price target, Oracle's stock price fell over 5% within days, reflecting market concerns about its future revenue prospects.
- Poor Financial Results: Oracle's financial report for Q2 FY 2026 revealed revenue growth below analyst expectations, capital expenditures exceeding forecasts, and negative free cash flow exceeding $10 billion, further exacerbating investor disappointment.
See More
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
See More
