👉 Should You Buy Oracle Stock Right Now?

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Hello Fellow Investors!

Forget everything you thought you knew about Oracle.

While investors flock to high-flying AI names like Nvidia and Microsoft, one of the biggest winners in the AI revolution might just be a legacy tech company flying under the radar.

Oracle (NYSE: ORCL -3.47%) has delivered a staggering 97% return over the past three years — nearly tripling the broader market’s performance.

But here’s the shocker: Oracle has blown past all of them with a jaw-dropping 97% return. While no one was watching, this "old-school" tech titan quietly became one of the biggest winners of the AI revolution.

Key Points:

• Oracle has surged 97% in 3 years, leaving major indexes — and even Microsoft — in the dust.

• AI-driven data center demand is fueling explosive growth in Oracle’s cloud segment.

• Valuation is cooling off, making this AI infrastructure play look more attractive than ever.

🔥 What’s Fueling Oracle’s Explosive Comeback?

So what’s powering Oracle’s (NYSE: ORCL)  dramatic resurgence?

It all comes down to booming demand for AI infrastructure. As companies rush to build and deploy next-gen AI models, the need for high-performance cloud data centers is exploding — and Oracle is right in the middle of it.

In Q3 FY2025, Oracle reported a 6% overall revenue increase to $14.1 billion. But the real story is in cloud services, which surged 23% to $6.2 billion, now accounting for 44% of total revenue. That trend isn’t slowing down any time soon.

📊 Should You Buy Oracle Before Wall Street Wakes Up?

Oracle’s (NYSE: ORCL) upside potential is clear — but so are the risks.

The company is making massive investments to scale its cloud and AI infrastructure, which has pressured free cash flow despite rising revenues. And while demand for AI is sky-high today, a slowdown could hit Oracle hard.

That said, valuations have come back down to earth, with a P/E ratio of 36 compared to its three-year peak of nearly 50. For long-term investors who believe in the AI infrastructure boom, Oracle could be a stealthy, high-upside opportunity in a crowded AI field.

Strengths

• Strong AI Infrastructure Positioning: Oracle plays a critical role in powering AI workloads with its expanding network of high-performance cloud data centers.

• Accelerating Cloud Revenue: Cloud services now make up nearly 44% of total revenue and are growing at over 20% year-over-year, showing strong momentum.

• Impressive Stock Performance: Oracle has outperformed the broader market and major tech peers like Microsoft, delivering a 97% total return over three years.

Weaknesses

• Slower Top-Line Growth: Overall revenue is growing at just 6% annually, which could limit upside in a competitive tech landscape.

• Heavy Capital Expenditures: Massive investments in infrastructure are weighing on free cash flow and could pressure short-term financial flexibility.

• AI Dependency Risk: A slowdown in AI-related spending from enterprise customers could quickly dampen Oracle’s growth trajectory.

Potential

• Undervalued in the AI Race: Despite its recent gains, Oracle is still flying under the radar compared to other big-name AI stocks, leaving room for further multiple expansion.

• Global Data Center Expansion: Continued growth in cloud infrastructure, especially in underserved international markets, could drive the next wave of revenue.

• Strategic Partnerships: Oracle’s collaborations with AI-focused companies and hyperscalers could further entrench it in critical parts of the AI supply chain.

Conclusion

Oracle has emerged as one of the most surprising winners of the AI revolution — delivering a stunning 97% return over the past three years, far outperforming Microsoft, the S&P 500, and the Nasdaq.

Fueled by soaring demand for AI-driven data center infrastructure, Oracle’s cloud business is now the engine of its growth, with cloud services accounting for nearly half of its total revenue.

Despite challenges like slower overall revenue growth and rising capital expenditures, Oracle's valuation has cooled, making it a compelling pick in the red-hot AI space.

Final Thought

In every tech revolution, there’s a giant working quietly in the background. What if Oracle is that giant for the AI age?

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_{~ Final Thought: "Fortune Favors the Bold: Embrace Opportunity Property, Execute Strategy, and Reap the Rewards of Investing Wisely.”}🌱

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