Stocks & ETFs to Benefit From Trump's Stargate Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2025
0mins
Source: NASDAQ.COM
U.S. AI Infrastructure Initiative: President Donald Trump announced a $500 billion initiative called Stargate to develop AI infrastructure in the U.S., partnering with companies like NVIDIA, Microsoft, and Arm to build data centers, with an immediate investment of $100 billion.
UAE Stargate Collaboration: The UAE is also launching its own AI data center project, supported by major tech firms including Oracle and Cisco, with plans for a large campus in Abu Dhabi, while NVIDIA will supply chips for both U.S. and Saudi data centers.
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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: 184.100
Low
180.00
Averages
309.59
High
400.00
Current: 184.100
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.
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See More
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- Significant Revenue Growth: Oracle's Q4 fiscal year 2026 revenue increased by 21% year-over-year to $19.18 billion, surpassing the analyst consensus of $19.1 billion, indicating strong performance in the cloud computing sector.
- Surge in Cloud Revenue: Cloud revenue soared by 47% to $9.9 billion, with cloud infrastructure revenue skyrocketing by 93% to $5.8 billion, demonstrating the company's growing competitiveness in the cloud services market.
- Massive Backlog Increase: Oracle's cloud computing backlog surged 363% to $638 billion, primarily driven by prepayments for GPUs from customers, laying a solid foundation for future revenue growth.
- Optimistic Future Outlook: The company maintained its revenue forecast of $90 billion for fiscal year 2027 and projected a revenue increase of 27% to 29% for Q1 2027, reflecting confidence in its future performance.
See More
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- Mixed Earnings Report: Oracle's total revenue exceeded estimates, yet cloud revenue fell short of consensus expectations, with RBC Capital describing the fourth-quarter results as mixed, reflecting uneven growth across its business segments.
- AI Contract Potential: Management noted that the Bring Your Own Hardware (BYOH) segment of Oracle's AI contracts has reached $75 billion, which is expected to help reduce the company's financing requirements and enhance its competitive position in the AI market.
See More
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- Significant Revenue Growth: Oracle's Q4 revenue increased by 21% year-over-year to $19.18 billion, surpassing the analyst consensus of $19.1 billion, indicating strong performance in the cloud computing sector and reinforcing its market position.
- Surge in Cloud Revenue: Cloud revenue soared by 47% to $9.9 billion, with cloud infrastructure revenue skyrocketing by 93% to $5.8 billion and cloud application revenue growing by 10% to $4.1 billion, demonstrating the company's substantial share in the rapidly expanding cloud market.
- Massive Backlog Increase: Oracle's cloud computing backlog surged by 363% to $638 billion, with $75 billion coming from customers prepaying for GPUs, which not only alleviates cash flow pressure but also sets a solid foundation for future revenue growth.
- Optimistic Future Outlook: The company maintains its revenue forecast of $90 billion for fiscal year 2027 and projects Q1 2027 revenue to rise by 27% to 29%, with cloud revenue expected to climb by 57% to 63%, reflecting strong growth potential and market confidence.
See More
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- Cost vs. Performance: While the iShares Semiconductor ETF has nearly double the expense ratio of the Invesco PHLX Semiconductor ETF, its more balanced portfolio may provide better protection during market volatility, suggesting investors should choose ETFs based on their risk tolerance.
See More
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- Market Share and Customer Dependency: Oracle's remaining performance obligations (RPO) reached $638 billion, a 363% year-over-year increase, with approximately $300 billion attributed to OpenAI, indicating strong demand in AI infrastructure but also exposing risks from over-reliance on a single customer.
- Financial Performance and Growth Outlook: In Q4 of fiscal 2026, Oracle generated total revenue of $19.2 billion, up 21% year-over-year, with cloud infrastructure contributing $5.8 billion and growing at 93%, yet only 12% of RPO is expected to convert to revenue in the next 12 months, highlighting growth uncertainties.
- Debt and Investment Risks: Oracle carries over $122 billion in long-term debt and plans to raise an additional $40 billion through debt and equity, which, while aimed at expanding AI data centers, poses short-term financial pressures that could affect investor confidence.
- Stock Valuation and Market Prospects: With a price-to-earnings (P/E) ratio of 31.6, slightly below the Nasdaq-100's 34.6, and forecasts of 45.7% earnings growth in fiscal 2028, investors may need to adopt a wait-and-see approach due to current market challenges.
See More
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- Order Backlog Concerns: Oracle's order backlog stands at $638 billion, indicating strong market demand; however, investors are cautious about the fulfillment capabilities of some customers, particularly regarding OpenAI's substantial commitments that may not be met.
- Financial Performance Insight: In Q4 of fiscal 2026, Oracle generated $19.2 billion in total revenue, a 21% year-over-year increase, with its Cloud Infrastructure contributing $5.8 billion and growing at an impressive 93%, highlighting significant demand for data center capacity.
- Profitability and Risks: With a GAAP earnings per share of $5.83 and a P/E ratio of 31.6, slightly below the Nasdaq-100's 34.6, analysts forecast only 7.7% earnings growth for fiscal 2027, suggesting limited upside potential in the near term.
- Debt and Investment Pressure: Oracle carries over $122 billion in long-term debt and plans to raise an additional $40 billion through debt and equity, creating a risky scenario for investors as the company accelerates its investment in AI data centers amidst uncertain revenue conversion from its backlog.
See More
