These 2 AI Stocks Could Surpass Oracle in Market Cap by 2030

Core Viewpoint - Investors may want to consider alternatives to Oracle, as two companies could potentially grow faster and surpass Oracle's $801 billion market capitalization by 2030 [1] Oracle's Performance and Risks - Oracle's heavy reliance on significant contracts, such as a $300 billion deal with OpenAI, increases its counterparty risk [2] - Despite strong operational performance, Oracle missed analysts' revenue and earnings estimates for fiscal Q1 and reported negative free cash flow [3] - The company plans to invest $35 billion in capital expenditures in fiscal 2026, indicating a focus on long-term growth over short-term profits [3] Revenue Growth and Competitive Advantages - Oracle's cloud infrastructure revenue grew 54% year over year to $3.3 billion, driven by its AI database and multicloud strategy [4] - The company has a $455 billion contracted backlog, suggesting significant revenue expansion potential in the coming years [6] Comparisons with Competitors - Palantir Technologies, with a market cap of $436 billion, is positioned as a strong competitor in enterprise AI, showing a 48% revenue increase to over $1 billion in Q2 [9] - Palantir's AI Platform (AIP) is a key growth driver, integrating large language models to solve complex enterprise challenges [10] - Eli Lilly, with a market cap of $800 billion, reported a 38% revenue increase to $15.6 billion in Q2, driven by its drug tirzepatide [14][15] Future Growth Potential - Palantir's government contracts provide a stable revenue base, and its software can scale with fewer resources compared to Oracle's hardware-based business model [11][12] - Eli Lilly's drug pipeline, including tirzepatide and orforglipron, is expected to drive significant revenue growth, potentially exceeding Oracle's market cap by 2030 [18]