Top Rated Stock | You Should Go Long On Oracle - And Its Upcoming Investor Day Event Is Just Part Of The Reasons

From reaching deals with OpenAI to buying thousands more AMD chips, Oracle’s recent series of moves shows its ambition is being more than just “a database powerhouse” - the company now wants to position itself at the heart of the global AI infrastructure race. Such determination is making its stock even more attractive.

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Oracle Corp (ORCL): Riding the AI-Cloud Wave — With Eyes Wide Open

Median Price Target: $333  

Recommendation: Buy

Oracle’s latest quarterly results (Q1 FY 2026) showed total revenue of $14.9 billion (+12% YoY) and non-GAAP EPS of $1.47 (+6% YoY). Its remaining performance obligations (RPO) — a measure of contracted future revenue — surged 359% year-over-year to $455 billion, reflecting a tidal wave of large cloud and AI contract wins.

The cloud segment continues to fuel Oracle’s narrative. Cloud (IaaS + SaaS) revenue climbed ~28% YoY, with infrastructure (IaaS) specifically growing ~55%. Oracle has guided OCI revenue to grow 77% in FY 2026 to $18 billion, and management outlines a potential path to $144 billion over the next five years. Its MultiCloud database revenue, via partnerships with AWS, Google, and Microsoft, exploded ~1,529% in the quarter — showing increasing adoption of Oracle’s software stack within rival clouds.

Strengths & Catalysts

Oracle’s growth trajectory continues to benefit from a massive backlog and strong revenue visibility, as reflected in its robust remaining performance obligations (RPO). This provides the company with a solid foundation and reduces near-term uncertainty around future earnings. At the same time, Oracle is sharpening its strategic focus on artificial intelligence and infrastructure expansion. Its newly announced partnership with AMD — involving the deployment of 50,000 MI450 AI chips across next-generation data centers — underscores a deepening commitment to AI compute capacity and long-term competitiveness in the cloud market.

If Oracle can scale its cloud operations efficiently, significant margin expansion could follow, as fixed infrastructure costs are spread over a growing revenue base. Analysts at Mizuho, for instance, project that Oracle’s cloud gross margins could eventually approach 25%. Reinforcing this optimism, many on Wall Street now view Oracle as a core AI–cloud hybrid play, with several firms recently raising their price targets in recognition of the company’s execution momentum and strengthening strategic position.

Outlook & Strategic View

Oracle today sits at a pivotal junction: it is no longer just a stalwart database and enterprise software company, but is actively chasing the mantle of an AI-compute infrastructure player. Its current valuation is aggressive, priced for flawless execution.

In a bull-case scenario, Oracle delivers or outpaces its guided growth, scales infrastructure efficiently, and sees margin recovery in its cloud/AI business. In that event, ORCL could drive double-digit annual returns and justify many of its valuation multiples. In a base case, cloud growth continues, but margin expansion is gradual, and the stock gains modestly (mid-single to low double digits annually).

Given the strength of its backlog and the secular AI/cloud tailwinds, I view ORCL as a high-conviction long idea, but one where patience is prudent. For new entrants, waiting for a pullback or confirmation of margin expansion may improve risk/reward. For existing holders, holding and monitoring execution metrics (cloud gross margins, RPO growth, capex efficiency) is key.