30 Billion Reasons to Buy Oracle Stock Like There's No Tomorrow

Core Viewpoint - Oracle has signed a significant cloud deal expected to generate over $30 billion in annual revenue starting in fiscal year 2028, indicating a transformative shift for the company in the AI infrastructure space [7][5][12] Group 1: Oracle's Market Performance - Oracle's shares have increased by 42% in 2025, outperforming the "Magnificent Seven" tech stocks and broader indices like the S&P 500 and Nasdaq Composite [3] - The company's forward price-to-earnings (P/E) multiple stands at 35, one of the highest among leading cloud infrastructure players, reflecting a premium valuation [13] Group 2: Cloud Deal Details - The new cloud deal aligns with global trends where businesses are investing heavily in AI infrastructure, with Oracle offering infrastructure-as-a-service (IaaS) to allow customers to access AI-equipped data centers without the need for extensive capital investment [6][5] - The specific customer for the new cloud deal has not been disclosed, but potential candidates include OpenAI and G42, both of which have existing or developing partnerships with Oracle [8][11][10] Group 3: Future Growth Prospects - The macro perspective suggests that AI infrastructure spending could reach trillions of dollars in the coming decade, positioning Oracle favorably within this growth trend [12] - Despite the current stock price reflecting some of the upside from the new deal, Oracle's long-term growth prospects remain strong, particularly with its ability to secure new deals for its Oracle Cloud Infrastructure (OCI) [15][16]