For over a century, the US economy has produced the world’s most valuable companies. US Steel It became the first billion-dollar company in 1901 and 117 years later in 2018. apple It became the first company to achieve a $1 trillion valuation.
Apple continues to be the world’s largest company with a market capitalization of $3.3 trillion. However, since 2018, several other American organizations have joined it. Microsoft, nvidia, Amazon, alphabet, Meta Platformand Berkshire Hathaway. Tesla and Broadcom He was also a member until recently, when stock prices fell sharply.
I think the other company could potentially surpass the $1 trillion milestone in the coming years. Oracle(NYSE: ORCL) It operates some of the best data center infrastructure for artificial intelligence (AI) development, and management guidance suggests that this portion of its business could be ten times longer in the long run.
Oracle is valued at $400 billion at the time of writing, so investors who buy stocks today can earn a whopping 148% profit if they join a $1 trillion club.
Image source: Getty Images.
There are two important phases in the development of AI models. Training phase When a developer feeds and learns the mountain of data into the model’s mountain, the inference phase is when the model accepts input from the user and generates a response (for example, when interacting with a chatbot). Both require a significant amount of computing power, and most developers source it from companies like Oracle.
Oracle operates the world’s best AI data centers. It is equipped with cutting-edge graphics processing units (GPUs) from major suppliers such as Nvidia. Advanced Micro Devicesa chip specifically designed to handle AI workloads. In fact, Oracle is currently building a cluster of 64,000 Nvidia Blackwell GB200 GPUs. Not only is this the most powerful chip in the industry today, it will be one of the largest clusters offered by data center operators.
If developers have access to more chips, they can process more data more quickly, and therefore deploy “smart” AI models. However, this is not the only advantage of Scale, as Scale’s proprietary Random Direct Memory Access (RDMA) network technology allows data to travel much faster than traditional Ethernet networks. Developers usually pay for their computing power in seconds, which can lead to significant cost savings.
Oracle opened its 101st Data Center Cloud Region during the third quarter of 2025 (ends February 28th), but demand continued to outpace supply. In fact, Chairman Larry Ellison said that GPU use alone has skyrocketed by a staggering 244% over the past 12 months, and that the company also sees “huge” demand for inference workloads.
Nvidia CEO Jensen Huang believes that the next generation of AI inference models consumes 100 times more computing power than its predecessors, spending time “thinking” before rendering responses. As a result, the demand for datacenter capacity for inference workloads is simply hot, so Oracle wants to grow its footprint into a cloud area of 1,000-2,000 over the long term.
In other words, Oracle could ultimately run more than 10 times more data centers than today.
While Oracle generated $14.1 billion in total revenue in the third quarter of 2025, the Oracle Cloud Infrastructure (OCI) segment, where AI data centers are occupying that figure, represents just $2.7 billion.
However, while Oracle’s total revenues rose just 6% year-on-year, OCI revenues rose 49%, making it the fastest growing portion of the entire organization. The OCI business will grow even faster if there are enough data centers to meet demand. So, the company expects revenue growth to accelerate significantly as more capacity goes online.
Oracle CEO Safra Catz expects OCI revenue to rise by more than 50% in fiscal year 2025 (ends May 31), making card growth even faster for fiscal year 2026.
To put a great point on Oracle’s future potential, the company’s remaining performance obligations (RPOs) skyrocketed to a record high of $130 billion (all business segments) in the third quarter. The RPO is like an order backlog that is expected to be converted into future revenues, and Larry Ellison said the demand for AI training and inference workload capabilities is a major driver of Q3 surges.
Oracle has generated $4.26 in earnings per share (EPS) over the past four quarters. This brings the stock price to a price of 33.8 (P/E) ratio. This is roughly equivalent to the ratings of other AI cloud companies such as Microsoft and Amazon. Therefore, stock prices are not always cheap.
However, Wall Street consensus estimates (provided by Yahoo!) suggest that Oracle could offer $6.78 on EPS during fiscal year 2026 (starting June 2025). This means that inventory will have a forward P/E ratio of just 21.1, meaning it will need to rise by 59% or so next year, just to maintain its current P/E ratio of 33.8.
If that scenario occurs, we will increase Oracle’s valuation to $640 billion. From there, the company was able to reach a $1 trillion club within five years if it grew EPS by only 9.3% a year. I think that is very accomplished for two reasons. First, the company’s estimated EPS for fiscal year 2026 represents 13% growth, and second, management expects to accelerate revenue growth led by the OCI business.
Oracle’s data centers rely heavily on automation, reducing the workforce and other operational costs. As a result, the company expects a rise in profit margins as its OCI business continues to expand, which will increase the overall EPS. Don’t forget that Oracle is planning to increase the footprint of your data center 10 times From here, it could drive explosive revenue growth over the long term.
So I think Oracle has a clear path to joining the $1 trillion club in the future. That stock could be a major addition to your diversified portfolio.
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Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Anthony di Pigio There is no position in any of the stocks mentioned. Motley Fool recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. Motley Fool recommends Broadcom and recommends the following options: A $395 call at Microsoft for January 2026 and a $405 call at short term Microsoft for January 2026. To Motley’s fool Disclosure Policy.
