Investment Opportunity: Consider Oracle Stock for a Potentially massive Profit Today
Oracle's stock (ORCL) has been on a remarkable rise in 2025, gaining an impressive 42% and outperforming the Magnificent Seven and broader indices like the S&P 500 and Nasdaq Composite. This upward trend is largely attributed to the tech giant's strategic moves in the cloud infrastructure sector.
One such move is Oracle's recent cloud deal, expected to contribute more than $30 billion in annual revenue starting in fiscal year 2028. The identity of the new customer remains undisclosed, but reports suggest it is none other than Google. This partnership expansion marks a significant step for Oracle, as it now offers Google’s Gemini AI models to its customers via the Oracle Cloud Infrastructure Generative AI Service.
The high-profile partnership is not Oracle's only foray into the cloud infrastructure market. The company offers infrastructure-as-a-service (IaaS) through its Oracle Cloud Infrastructure (OCI), allowing customers to rent AI-equipped data centers and GPUs. This service has already attracted the attention of G42, an AI services holding company based in Abu Dhabi. The two entities have collaborated in a project with the Cleveland Clinic, and the new cloud deal may have deepened their partnership.
Despite Oracle's cloud infrastructure business showing promising signs, some trends suggest that the upside may already be priced into the stock. The company's forward price-to-earnings (P/E) multiple of 35 is among the highest across leading cloud infrastructure players. However, the author maintains a high conviction in Oracle's long-term growth prospects, citing the vast potential of AI infrastructure spending, which is projected to surpass trillions of dollars by the next decade, according to McKinsey & Company.
Moreover, the author sees Oracle stock as a compelling opportunity beyond the usual suspects and recommends buying shares. This optimism is further fuelled by the potential link between Oracle and Project Stargate, a joint venture announced by Oracle founder Larry Ellison and OpenAI CEO Sam Altman. Project Stargate aims to invest $500 billion into AI infrastructure projects over several years, raising the possibility of complementing this new deal with Oracle's infrastructure services.
Notably, OpenAI has entered into a strategic partnership with Alphabet's Google Cloud Platform (GCP), suggesting a competitive landscape for cloud infrastructure providers. However, Oracle's strategic moves and partnerships position it well to capitalise on the growing demand for AI infrastructure services, making it an attractive investment opportunity for many.
In conclusion, Oracle's cloud infrastructure deal with Google, coupled with its strategic partnerships and investments in AI infrastructure, positions the company well for the future. Despite the high P/E ratio and potential pricing, the tech giant's long-term growth prospects remain promising, making it a compelling opportunity for investors beyond the usual suspects.
