1 Must-Buy AI Stock Poised to Reach $1 Trillion by 2028, Wall Street Predicts

Key Takeaways

  • Oracle, with a market cap of $705 billion, is on track to join the $1 trillion club, fueled by its AI and cloud offerings.
  • In fiscal Q4 2025, Oracle’s revenue grew 11% year-over-year to $15.9 billion, exceeding analyst expectations.
  • Analysts forecast Oracle’s revenue could reach $66.8 billion in fiscal 2026, positioning it for significant future growth.

The Rise of Oracle in AI and Cloud

Oracle is positioning itself for significant growth in the artificial intelligence (AI) and cloud sectors. The impact of AI on technology has been profound, particularly among the world’s leading companies. Eight out of the top ten firms by market cap, many of which are involved in semiconductors and IT, highlight AI’s importance in modern business contexts.

Nvidia, known for its graphics processing units, and Taiwan Semiconductor Manufacturing, which produces 90% of advanced semiconductors, are key industry players. Oracle, with a current market cap of $705 billion, is poised to join this elite group due in part to the booming demand for AI capabilities.

As a trusted partner to nearly 98% of the Global Fortune 500, Oracle leverages its database, cloud, and enterprise software to meet the growing needs of multinational clients. This strategy contributed to an 11% year-over-year revenue increase, reaching $15.9 billion in the fourth quarter of fiscal 2025. Adjusted earnings per share grew 4%, helping Oracle exceed Wall Street’s financial projections.

CEO Safra Catz emphasized that Oracle has reached a “tipping point” in growth, predicting cloud revenue will escalate to 40% in fiscal 2026, significantly surpassing that of competitors. The company’s remaining performance obligation (RPO)—contracts yet to be recognized as revenue—rose by 41% year-over-year to $138 billion. Catz indicated a potential acceleration of RPO to grow more than 100% in fiscal 2026, forecasting total revenue to exceed $67 billion next year, which translates to a 16% annual growth rate in constant currency.

Oracle’s strong reputation for providing customized cloud and AI solutions positions it well to capitalize on the generative AI market, which is projected to reach as much as $15.7 trillion annually by 2030 according to PwC. Analysts expect Oracle’s revenue to hit $66.8 billion in fiscal 2026, translating to a price-to-sales ratio of approximately 11. Assuming this ratio remains stable, Oracle would need to achieve around $95 billion in annual revenue to reach a $1 trillion market capitalization by 2028.

With growth forecasts aligned with management’s long-term vision of $104 billion by fiscal 2029, Oracle stands at the cusp of a transformative opportunity. Should the company effectively leverage its AI capabilities, it may very well become a member of the $1 trillion market cap club sooner rather than later.

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