The American economy has produced the world’s most valuable companies for over a century. United States Steel It became the first company of one billion dollars in 1901, and 117 years later in 2018, Apple It became the first company to achieve a value estimate of $ 1 trillion.
Apple remains the world’s largest company with market capitalization of $ 3.3 trillion. But since 2018, several other American organizations joined him at the Trillion Club, including Microsoft,, Nvidia,, Amazon,, Alphabet,, Meta platformand Berksshire Hathaway. Tesla and Broadco They were also members until they recently suffered a sharp drop in shares.
I think another company has the potential to yield a turning point of $ 1 billion in the coming years. Prophet(Nyse: orcl) It is managed by some of the best infrastructure of the Data Center for the Development of Artificial Intelligence (AI), and management guidelines suggest that this part of its business could grow ten times in the long run.
Oracle is estimated at $ 403 billion since this writing, so that investors who buy shares today can earn a whopping 148% if he joins a $ 1 trillion club.
Picture source: Getty Images.
Two key stages are included in the development of AI models: training phase is when the developer feeds the data of the data of data from which it can be learned, and the conclusion phase is when the model accepts the user and generates answers (such as when communicating with Chatbot). Both require a considerable amount of computer power, and most developers make it from companies like Oracle.
Oracle manages some of the best AI data centers in the world. They are equipped with state -of -the -art processing units (GPU) from leading suppliers like Nvidia and Advanced micro deviceswhich chips are specially designed to process the work load of AI. In fact, Oracle is currently building a set of 64,000 Nvidia Blackwell GB200 GPUs – not only is the most powerful chip in the industry currently, but it will be one of the biggest clusters on the offer of any data operator.
When developers have access to multiple chips, they can process more data faster and thus implement many “smarter” AI models. But Scale is not the only advantage of Oracle, because its ownership technology of the network approach to random direct memory (RDMA) allows the data to move from one point to the other much faster than the traditional Ethernet network. Because developers usually pay computer capacity per minute, this may result in significant cost savings.
Oracle opened its 101th region of clouds of the data center during its fiscal third quarter 2025 (completed on February 28), but demand continued to surpass the supply significantly. In fact, Chairman Larry Ellison said that only the use of GPU for AI training for training purposes increased by a whopping 244% in the last 12 months, and the company also saw “huge” demand for work loads.
NVIDIA Executive Director Jensen Huang thinks that models of next-generation resonation models, which spend more time “thinking” before answering, will spend 100 times more computer forces than its predecessors. As a result, the demand for the capacity of the data carriage center is only heated, so it is not surprising that Oracle wants to increase its mark on between 1,000 and 2,000 cloud regions in the long run.
In other words, Oracle could eventually have more than 10 times more data centers in work than today.
Oracle generated a total revenue of $ 14.1 billion during the 2025 fiscal third quarter, but the Oracle Cloud Infrastructure segment (OCI) (where the company made up its AI data centers) represented only $ 2.7 billion and figures.
However, while Oracle’s total revenue increased by only 6% compared to the year, the OCI revenues increased by 49%, making it the fastest growing part of the entire organization with a wide margin. The job of eyes would become even faster if there were enough data centers to satisfy the demand, which is why the company expects that revenue growth will be significantly accelerated as more capacity will appear online.
Orafra Catz CEO is expected to increase the revenue from the fathers by more than 50% for a fiscal 2025. The full year (which ends on May 31), with an even faster growth rate on the fiscal 2026 cards.
In order to put a fine point on Oracle’s future potential, the remaining obligations of the company’s success (RPO) increased by 63% to a record maximum of $ 130 billion (in all business segments) during the third quarter. RPOs are like the arrears of an order that will turn into revenue in the future, and Larry Ellison said the demand for the AI training capacity and the work load of concluding the Q3 pursuers are large.
Oracle has earned $ 4.26 earnings per share (EPS) in the last four quarters, which puts his shares at the ratio of price and earnings (P/E) of 33.8. This is roughly compared to the estimates of other AI Cloud Company like Microsoft and Amazon, so stocks are not necessarily cheap, nor are they expensive:
However, the Wall Street consensus assessment (provided by Yahoo!) suggests that Oracle could deliver $ 6.78 EPS during the Fiscal 2026 (which begins in June 2025). This puts its stock compared to the P/E ratio of only 21.1, which implies that it will need to increase by 59% in the next year or so only to maintain its current P/E of 33.8.
If that scenario is played, it would increase Oracle’s estimate to $ 640 billion. From there, the company could reach the club in the amount of $ 1 trillion within five years if it grows its EPS by only 9.3% per year. I think this is very realistic for two reasons: first, an estimated EPS company for a fiscal 2026. It represents a growth of 13%, and second, the administration predicts acceleration of revenue growth, and led the eyes of the job.
Oracle data centers are largely relied on to automation, which reduces the work and other operational costs. As a result, the company predicts growing profit margins while the eyes still increase the increase, which will increase its EPS as a whole. Remember, Oracle plans to increase your trace of data center more than tenfold From here, which could in the long run encourage the growth of explosive earnings.
Therefore, I think Oracle has a clear path to joining a $ 1 trillion club in the coming years, and her supplies could be a great addition to any diverse portfolio.
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Randa Zuckerberg, former director of the development of the market and spokeswoman for Facebook and sister of Meta Platform Executive Director Mark Zuckerberg, is a member of the Board of Directors Motley Fool. John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Suzanne Frey, Executive Director of Alphabeta, is a member of the Board of Directors Motley Fool. Anthony di Pizio There is no position in any of the shares mentioned. Motley Fool has positions and recommends advanced micro devices, alphabet, Amazon, Apple, Berksshire Hathaway, Meta platforms, Microsoft, Nvidia, Oracle and Tesla. Motley Fool recommends Broadcom and recommends the following options: Long January 2026. $ 395 calls to Microsoft and short January 2026. $ 405 calls to Microsoft. Motley Fool has disclosure rules.
