1 Unstoppable Stock That Could Join Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla in the $1 Trillion Club

Source The Motley Fool

Key Points

  • Oracle has become a key provider of artificial intelligence (AI)-powered products and services for big tech.

  • By not being in the chatbot wars, it isn't competing against the big tech giants in that arena.

  • Its contract backlog has increased an incredible 359%.

  • 10 stocks we like better than Oracle ›

There are several stocks that are now worth at least $1 trillion. This includes Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla, which are together known as the "Magnificent Seven." There are others now part of the trillion-dollar club, but these are among the more notable names.

The list may get even bigger in the years ahead, as many businesses are growing and benefiting from feverish spending on artificial intelligence (AI). There's one unstoppable company that's doing well due to that trend, and which looks set to join the club in the near future: Oracle (NYSE: ORCL). Here's why it may not be too late to invest in this promising tech stock.

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 »

A person interacting with artificial intelligence.

Image source: Getty Images.

Oracle has become a key player in the AI boom

For years, Oracle has been known as a big name in databases and providing companies with the critical backend services and infrastructure they need to manage all their data. It still serves that purpose today, plus it also offers key products and services, which help its customers manage AI workloads.

Its new Oracle AI World, for instance, will allow its customers to use large language models to analyze existing databases. The big advantage with Oracle is that unlike many big tech companies, it's agnostic to the whole chatbot market; it isn't developing one of its own, and it's there to simply provide customers with the AI-powered products and services they need. It also has AI agents that can help to automate tasks and add efficiency.

And its efforts have been paying off. Last month, the company reported its latest quarterly results (for the period ending Aug. 31) and demand remains robust, with CEO Safra Catz noting that it "signed four multibillion-dollar contracts with three different customers in Q1." It expects even more large contracts to be signed in the future. And its contract backlog has skyrocketed by 359% year over year, totaling $455 billion.

Oracle's quarterly revenue totaled $14.9 billion and rose 12% year over year. Its cloud segment led the way, as sales in that business unit came in at $7.2 billion and were up by 28%.

The company also generates terrific profit margins, as its net income during the period was $2.9 billion, which is comparable to what it generated in the prior-year period. The bottom line would have been larger, however, if not for an increase in restructuring expenses, as the company has been reducing its workforce in an effort to improve efficiency.

Why a $1 trillion valuation may be just an inevitability at this point

Oracle's market cap as of the end of Monday was around $820 billion. For it to hit a $1 trillion valuation, it would need to rise by another 22% from that. In just the past year, its shares have soared more than 70%. And with tech companies continuing to invest heavily into AI, Oracle looks poised to benefit from those growth opportunities.

It may not happen soon, and it could take a couple of years, as the stock has already risen so fast. It's currently trading around its all-time highs, and its price-to-earnings multiple of 66 doesn't look cheap at all. As a result, growth investors may be thinking twice about the stock, and that could lead to limited gains, at least in the short term.

But with so much growth still out there, it may truly be an inevitability before Oracle reaches $1 trillion. According to analysts from the MarketsandMarkets, the global cloud AI market is projected to grow at a compounded annual growth rate of 32.4% until 2029. It's a staggering level of growth, with Oracle right in the middle of it all.

Oracle's still a good buy today

Although you may be tempted to pass on Oracle's stock because its valuation is a bit rich, over the long term, there's still much more runway for it to become more valuable. The important role it plays in tech makes it a solid investment, particularly due to its close relationship with other tech giants.

Oracle's solid fundamentals and AI-powered growth makes it a great investment to add to your portfolio today, especially if you're looking for an AI stock that still has a lot of upside left.

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 $657,979!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 187% 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 October 7, 2025

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD gains momentum to near $3,650, eyes on US CPI releaseThe Gold price (XAU/USD) gains momentum to near $3,645 during the early Asian session on Thursday.
Author  FXStreet
Sep 11, Thu
The Gold price (XAU/USD) gains momentum to near $3,645 during the early Asian session on Thursday.
placeholder
What to expect from Ethereum in October 2025With broader sentiment worsening, user demand falling across the Ethereum network, and institutional investors pulling back, the coin faces mounting headwinds in October.
Author  Beincrypto
Sep 30, Tue
With broader sentiment worsening, user demand falling across the Ethereum network, and institutional investors pulling back, the coin faces mounting headwinds in October.
placeholder
Could a Yen Carry Trade Unwind Become the Next Black Swan Event?The Japanese yen has weakened significantly, trading past ¥153 per US dollar for the first time since February.
Author  Beincrypto
Oct 10, Fri
The Japanese yen has weakened significantly, trading past ¥153 per US dollar for the first time since February.
placeholder
S&P 500 loses $1.5 trillion after Trump threatened new China tariffsThe Dow tanked nearly 900 points on Friday as markets completely flipped after President Donald Trump threatened fresh tariffs on Chinese goods.
Author  Cryptopolitan
Yesterday 01: 07
The Dow tanked nearly 900 points on Friday as markets completely flipped after President Donald Trump threatened fresh tariffs on Chinese goods.
placeholder
Bitcoin, crypto market experience largest decline in 2025 as Trump threatens fresh tariffs on ChinaBitcoin (BTC) briefly declined nearly 10% on Friday as the crypto market took a sharp downturn following US President Donald Trump's plan to raise tariffs on Chinese goods.
Author  FXStreet
Yesterday 02: 06
Bitcoin (BTC) briefly declined nearly 10% on Friday as the crypto market took a sharp downturn following US President Donald Trump's plan to raise tariffs on Chinese goods.
goTop
quote