The AI Infrastructure Stock That's Stealing Market Share in 2026

One of the more surprising moves in the cloud industry has come from Oracle (NYSE: ORCL). The company built its reputation as the leader in relational databases, but it breathed new life into its business when it discovered that its IT infrastructure positioned it to succeed in the cloud business.

With that, it has developed a niche for high-performance computing workloads, a competitive advantage that could help it steal market share in 2026, and here's how.

Oracle and the cloud

Oracle stands out in the cloud market because of its focus on high-performance computing in a cost-effective manner, making its offering more attractive to its customers.

That may be what helped it attract a $300 billion deal from OpenAI last fall. Consequently, its backlog has risen to $523 billion. Also, since it continues to expand its services to more regions, it will probably be better able to leverage that backlog into a higher market share.

Currently, it is the fifth-largest cloud provider as measured by market share. Even though its 3% market share rose from 2% in 2024, it may not sound significant.

Nonetheless, Grand View Research estimated the industry's size at $944 billion. It also projects a compound annual growth rate (CAGR) of 16% between 2026 and 2033, taking the industry's size to over $3.3 trillion by that year. Thus, even if that market share stays the same, Oracle should benefit significantly.

Image source: Statista.

Oracle by the numbers

Such conditions have translated into improved financials. In the first six months of fiscal 2026 (ended Nov. 30, 2025), its cloud segment alone generated over $15 billion in revenue. That was a 31% yearly increase, and it was Oracle's only segment that grew revenue at a double-digit rate.

Moreover, Oracle reported $31 billion in overall revenue, rising 13% annually and making the cloud segment the company's largest at 49%. The cloud growth likely boosted its net income for the first half of fiscal 2026 to $9.1 billion, up from $6.1 billion in the year-ago period.

Furthermore, analysts forecast 17% revenue growth in fiscal 2026 and 29% the next year. That increased revenue growth could bode well for a stock whose performance has suffered in recent months.

Admittedly, the aforementioned investment in more cloud infrastructure has left it $108 billion in debt, a massive load for a company with a $30 billion book value.

Nonetheless, its P/E ratio of 33 is close to the S&P 500 average of 31. Considering the accelerating revenue growth and rising profits, that valuation could convince investors to overlook the debt, assuming those increases translate into a higher market share.

Oracle looking forward

Oracle's cloud market share is on a path to continued increases, and that should bode well for its stock price.

Indeed, Oracle claims a modest market share right now, and its debt load appears concerning.

However, Oracle's niche in high-performance computing has helped its cloud growth far exceed the industry's CAGR. With that and its heavy investments in itself, Oracle should be well-positioned to deliver returns for investors as it works down its backlog and claims a larger share of the cloud market.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.