Oracle’s cloud business is booming as enterprise demand for AI computing services expands.
The company expects its revenues to nearly double to $100 billion by its fiscal 2029.
The growth in demand for artificial intelligence (AI) systems and hardware has been a significant boon for the leading cloud infrastructure companies, because businesses that want to tap into the power of AI usually can't do it on their own. Instead, they generally need to rent access to high-end computing systems from data center operators.
The cloud infrastructure market has been dominated by Alphabet's Google Cloud, Amazon Web Services, and Microsoft Azure. But 2025 has seen Oracle (NYSE: ORCL) emerge as one of the fastest-growing cloud providers, and it's one of the best tech stocks you can hold for the next decade.
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Oracle's cloud infrastructure revenue grew 55% year over year in its fiscal 2026 first quarter (which ended Aug. 31), and management expects demand to remain strong for the long term. The company's outlook anticipates that its total revenues will increase from $59 billion on a trailing-12-month basis to $100 billion in its fiscal 2029.
Management has claimed that the company's cloud services are cheaper and faster than those of its competitors. This premise appears to be winning over new customers in droves.
Meanwhile, the stock's recent pullback provides new investors with an excellent buying opportunity. It's trading at a forward price-to-earnings multiple of 32, which is reasonable for a company expected to grow earnings per share at an annualized rate of 22%, based on the analyst consensus. This should set up many years of solid returns for shareholders.
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John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. 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.