Prediction: This Artificial Intelligence (AI) Stock Will Join Nvidia, Meta Platforms, Apple, Microsoft, Amazon, and Alphabet in the Trillion-Dollar Club By The End of The Decade

Core Viewpoint - Oracle is positioned to potentially join the trillion-dollar club by the end of the decade, driven by its growth in cloud infrastructure and artificial intelligence [3][11]. Company Growth Drivers - Oracle's revenue is categorized into four segments: cloud services and license support, cloud license and on-premise license, hardware, and services, with cloud services and license support accounting for approximately 75% of total sales [4]. - The fastest-growing segment is the cloud infrastructure unit (IaaS), which saw a 51% year-over-year increase in sales, reaching $2.7 billion, although it only represented about 20$300 billion on AI infrastructure in 2023, with significant investments in chipsets and data center buildouts [8]. - Oracle's existing partnerships with major tech firms and its involvement in initiatives like Project Stargate position it to capture a share of the increasing capital expenditure in AI infrastructure [9]. Financial Projections - Analysts expect Oracle's revenue to reach $77 billion by 2027, with an anticipated growth rate of 18$108 billion by 2029, leading to a market cap of $864 billion based on a current price-to-sales multiple of 8 [13]. - Achieving a market cap of$1 trillion would require Oracle to increase its revenue growth to 20% and raise its price-to-sales multiple to 9 by 2029 [13]. Long-term Outlook - The increasing investment in AI infrastructure is expected to accelerate Oracle's sales growth, particularly as new GPU architectures are introduced [14]. - As the IaaS segment becomes more central to Oracle's business, it is anticipated that investors will apply a premium multiple, potentially expanding the company's valuation to $1 trillion [15].