The billion dollars club could be joined by an infrastructure emerging player in the coming years.
At present, the six most precious technological companies in the world as measured by market capitalization are:
- Apple: 3.2 dollars
- NVIDIA: 2.9 dollars
- Microsoft: 2.9 dollars
- Amazon: $ 2.1 billion
- Alphabet: $ 2.0
- Meta Platforms: $ 1.6 billion
Apart from these technological giants, chiefs of tokens Manufacture of Taiwan semiconductors And Broadcomas well as the manufacturer of electric vehicles (EV) Teslaare all in a 15% decision of the achievement of an evaluation of a dollars Billion. What is notable about these three specific companies is that everyone once boasted of an assessment north of $ 1 billion, but recently dropped from the club during the market on the market.
The next largest artificial intelligence company (AI) the largest outside of Big Tech is Oracle (Orcl -3.48%))which currently has a market capitalization of $ 435 billion. In the past three years, Oracle Stock has generated a total return 98% – roughly tripled the earnings observed on both S&P 500 And Nasdaq Composite.
The most recent rear wind of the company, I see Oracle winning a ticket for the dollars’ billion club At the end of the decade. Let’s explore what is hidden behind the rapid ascent of Oracle and assess why I think the company can maintain its swinging gains on the market.
What stimulates Oracle growth?
Oracle reports its income between four categories: cloud services and license support, cloud license and on -site license, equipment and services. Among these four buckets, cloud services and license support include around three -quarters of the company’s sales. In addition, it is the only part of the company that is really developing.
Although these dynamics can lend themselves to a pessimistic account at first glance, I think that Oracle makes wise movements on the front of the AI which should possibly cannibalize the deceleration observed in the on -site segment and low -margin companies such as equipment and services.
According to the company’s budgetary results in the third quarter of 2025 (period ended on February 28), the fastest Oracle activity is its cloud infrastructure unit – nicknamed infrastructure as a service (IAAS). According to the third quarter financial report, IAAS sales increased by 51% from one year to the next constant currency at 2.7 billion dollars. Although the growth of this magnitude is impressive, the cloud infrastructure represented only 20% of the company’s total income for the quarter. Below, I will detail why I think that the company’s IAAS division is about to take off considerably in the coming years.
One of the main services that lead Oracle at the moment is Building graphic processing units (GPUS) in data centers in data centers. The company works in close collaboration with the leaders of the NVIDIA GPU and Advanced micro-apparents and afterwards Praise this infrastructure.
This year only, the Microsoft, Amazon and Alphabet Cloud hyperscalers, as well as the emerging AI meta-development platforms, are planned Spend more than $ 300 billion in AI infrastructure – a large part of which will be focused on chipsets and constructions of data centers. In addition to that, many leading companies, including Openai and Flexible bankparticipate in an infrastructure initiative of $ 500 billion in infrastructure of $ 500 billion under President Trump, called Stargate project.
Since Oracle is already working with Meta and the three main cloud hyperscalers, and management specifically referred to Project Stargate during the last call for results, I am optimistic that the growing oracle should capture part of this increase in capital investments (CAPE) by Big Tech – thus fueling significantly greater growth in its IAS division (CAPEX).
Image source: Getty Images.
Can Oracle obtain an assessment of a dollars Billion?
In order to reach an evaluation of a dollar billion, Oracle market capitalization is expected to increase by just over two years in the next five years.
ERCL income estimates for the current financial year data by Ycharts
According to the above estimates, Wall Street analysts expect Oracle revenues to reach $ 77 billion by 2027 – accelerating at a growth rate of 18% between 2025 and 2026. If I suppose that Oracle income will not continue to accelerate and the company maintains the annual sales growth of 18%, then the company will reach a total reaction of 108 billions of dollars compared to 2029.
From there, if I apply Oracle current sales prices (P / s) multiple of 8 to my income scheduled in 2029, then I will arrive at a market capitalization of $ 864 billion. Obviously, this is less than 1 dollars.
Just to illustrate the analysis from a mathematical point of view, if Oracle’s revenues reach an annual growth of 20% by 2029 and its multiple increases at 9, then the company would have seated at the door of a market capitalization of 1 Billion of Dollars. I think it’s doable.
The secular winds explored above underline the increase in investments in AI infrastructure in the coming years. This should help Oracle continue to accelerate its growth in sales rather than maintaining regular growth until the end of the decade – especially since new GPU architectures in Nvidia, AMD and hyperscalers are entering the market.
Over time, I think investors will start to apply a premium multiple in Oracle because its Iaas segment will become the company’s focal point – thus expanding the company’s evaluation to $ 1 Billion.
Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Adam Spatacco At positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool has positions and recommends micro advanced devices, alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Oracle, Taiwan Semiconductor Manufacturing and Tesla. The Motley Fool recommends Broadcom and recommends the following options: Long January 2026 395 $ calls Microsoft and short January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.