Prediction: This AI Stock Will Be the Market's Next Trillion-Dollar Superstar

Key Points

• Oracle's growth rate is expected to accelerate this year, and there's a good chance that it could revise its revenue estimates upward.

• The company expects to sign more multibillion-dollar contracts for its AI cloud infrastructure.

• Oracle's growth potential and premium valuation could take its market cap beyond the $1 trillion mark in the coming year.

• 10 stocks we like better than Oracle ›

The rapid growth of artificial intelligence (AI) in the past three years has helped quite a few companies enter the trillion-dollar market cap club, including Nvidia, Broadcom, and TSMC. The good part is that the proliferation of AI is still in the early stages.

According to one estimate, the global AI market is likely to clock a compound annual growth rate of nearly 36% through the end of the decade. So, it won't be surprising to see this technology help more companies enter the club of companies with market caps above $1 trillion. I think cloud giant Oracle (NYSE: ORCL) will be the next company to achieve a trillion-dollar market cap.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

AI has fueled a massive jump in Oracle's revenue pipeline

Oracle stock has jumped an impressive 88% in 2025 through Sept. 23 on the back of robust growth in its revenue and earnings. It now has a market cap of almost $877 billion, which means that it is just 14% away from the $1 trillion milestone. This puts Oracle in an ideal position to become the next AI-fueled trillion-dollar company, especially since it has a massive backlog that's going to help it accelerate growth.

Oracle has raised its fiscal 2026 revenue guidance to at least $67 billion, which would mark an improvement of almost 17% from the prior year. That would be double the growth rate that Oracle clocked in the previous fiscal year. However, there is a good chance of Oracle exceeding this forecast, considering the red-hot demand for the company's data centers for running AI workloads.

The company's Oracle Cloud Infrastructure (OCI) business has received a massive boost as companies have been renting data center capacity from Oracle for running AI models and building custom AI applications. The fact that Oracle's data center network is present worldwide, spanning more than 50 geographic regions, is a key reason why it has been witnessing phenomenal demand.

OpenAI, for instance, will be paying Oracle a massive $300 billion over a five-year period for access to its data center capacity. Oracle ended the first quarter of fiscal 2026 with a whopping $455 billion in remaining performance obligations (RPO), with the figure jumping by 359% from the year-ago quarter.

Oracle CEO Safra Catz said in a company press release that the company expects over the next few months to "sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars." All this puts Oracle in a terrific position to increase its revenue estimates. Oracle's massive RPO -- the total value of unfulfilled contracts at the end of a quarter -- also explains why it is expecting OCI revenue to increase 77% in fiscal 2026 to $18 billion, followed by a similar increase the following year to $32 billion.

The growth rate is expected to accelerate in fiscal 2028, with OCI revenue expected to more than double to $73 billion, driven by the addition of more cloud computing capacity. This outstanding growth in the company's OCI business is going to play a central role in helping Oracle achieve a trillion-dollar market cap.

The trillion-dollar milestone could arrive within the next year

Oracle has a median 12-month price target of $350, among 43 analysts covering the stock that CNN is tracking. That points toward a potential jump of 13% from current levels, which should be nearly enough to send this cloud computing giant into the trillion-dollar club.

However, investors can expect stronger gains from the company. The stock is currently trading at 15 times sales. Though that's expensive when stacked up against the U.S. technology sector's average sales multiple, the higher valuation is justified considering its improving growth profile. If Oracle can sustain this sales multiple at the end of the fiscal year and ends up with $70 billion in revenue thanks to its huge backlog, it could achieve a $1 trillion market cap.

So, investors looking for the next trillion-dollar company should consider adding Oracle to their portfolios, and the company's ability to notch faster growth in the coming years could help it become much bigger in the long run.

Should you invest $1,000 in Oracle right now?

Before you buy stock in Oracle, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,110!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,093,751!*

Now, it’s worth noting Stock Advisor’s total average return is 1,064% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.