3 Reasons Why Oracle's Cloud Computing Deals With Meta Platforms and OpenAI Make The "Ten Titans" Growth Stock a Top Buy Now

Core Insights - Oracle's stock price has surged 378% over the last three years, with a recent 36% jump following the announcement of plans to increase Oracle Cloud Infrastructure (OCI) revenue by over 14-fold in five years [1][2] Group 1: AI Data Centers and Partnerships - Oracle is specifically designing its data centers for AI, differentiating itself from established cloud giants like Amazon, Microsoft, and Google [4] - The company is rapidly expanding its infrastructure, with plans to bring over 70 new data centers online in the coming years, anticipating OCI growth to reach an inflection point by fiscal 2027 [5] - OCI is significantly faster than alternatives, providing cost and time savings for AI workflows, which positions Oracle to potentially become the top cloud for AI by 2031 [6] Group 2: Major Deals and Financial Stability - Oracle is securing high-value contracts in the AI sector, including a reported $20 billion deal with Meta for AI training and deployment [7] - The partnership with OpenAI is crucial for Oracle's five-year roadmap, although it relies on OpenAI's financial stability as it transitions to a Public Benefit Corporation [8][9] - OpenAI's collaboration with Oracle and SoftBank on new AI data centers is expected to involve over $300 billion in investment, with a total capacity of 10 GW planned [10][11] Group 3: Multicloud Strategy - Oracle's multicloud offering allows customers to manage workloads across various cloud providers while utilizing Oracle's database, minimizing data movement and reducing latency costs [12][13] - The integration of AI with large language models enhances data processing efficiency, enabling Oracle to attract business even from customers using rival cloud services [14] Group 4: Investment Thesis - Oracle's business model focuses on B2B services, providing an integrated suite of cloud, database, and enterprise software, which supports its competitive edge [15] - Recent partnerships with Meta and OpenAI enhance Oracle's investment thesis by highlighting the value of its next-generation data centers and cross-selling opportunities [16] - Despite a high valuation at 46.1 times forward earnings, the stock is considered worth the price for investors anticipating Oracle's pivotal role in OpenAI's data center expansion [17]