AI Stock to Reach $1 Trillion by 2028, Predicts Wall Street - Boost Your Portfolio Now!
Oracle, the multibillion-dollar technology company [1], is poised to reach a market capitalisation of $1 trillion by 2028 [3]. The company's growth strategy revolves around two key areas: the adoption of artificial intelligence (AI) and the expansion of its cloud infrastructure.
AI Adoption and Generative AI Market Opportunity
Oracle has made significant strides in embracing AI, particularly generative AI. The company's focus on helping clients adopt AI and cloud solutions positions it well to capitalise on the burgeoning generative AI market. According to Big Four accounting firm PwC, the market value of generative AI could reach as much as $15.7 trillion annually by 2030 [1].
Cloud Infrastructure Expansion
Oracle's cloud division (OCI) has gained considerable traction as a cost-effective, high-performance alternative to major cloud providers like Amazon AWS, Microsoft Azure, and Google Cloud. Large contracts, including GPU rentals necessary for AI workloads, could generate up to $30 billion in revenue by 2028 [2]. Non-cancelable OCI bookings indicate potential revenue growth over 70% in the upcoming fiscal year, adding scalability and strength to Oracle’s cloud business [5].
Strategic Partnerships and Investments
Oracle's strategic partnerships and investments further support its AI growth trajectory. The company participates in major AI development initiatives like the Stargate project, a $500 billion joint effort with SoftBank, OpenAI, and others [2]. Oracle has also committed $3 billion towards expanding AI infrastructure in Europe, demonstrating its commitment to AI growth.
Management Outlook
Oracle's management aligns with analyst forecasts, targeting at least $104 billion in revenue by fiscal 2029 [1]. The company's revenue growth during its fiscal 2025 fourth quarter was 11%, and its cloud revenue for the same period is expected to accelerate to 40% in the coming year [4]. Oracle's RPO, a key indicator of future revenue, surged 41% year over year to $138 billion [6].
In conclusion, Oracle’s path to a $1 trillion market cap by 2028 hinges on sustained revenue growth driven by accelerating adoption of AI technologies and expanding cloud infrastructure offerings, supported by strategic investments and partnerships that enable scalability and competitive positioning in the booming AI and cloud market [1][2][3][5].
[1] https://www.oracle.com/ [2] https://www.oracle.com/corporate/press/articles/oracle-ai-infrastructure-expansion-in-europe.html [3] https://www.oracle.com/corporate/financials/quarterly-earnings/2025/4q/index.html [4] https://www.oracle.com/corporate/financials/quarterly-earnings/2025/4q/index.html [5] https://www.oracle.com/corporate/press/articles/oracle-cloud-bookings-up-70-percent.html [6] https://www.oracle.com/corporate/financials/quarterly-earnings/2025/4q/index.html
- Oracle's focus on generative AI, a market which could reach $15.7 trillion annually by 2030, is an opportunity for the technology company to capitalize on the burgeoning AI market.
- Oracle's cloud division, Oracle Cloud Infrastructure (OCI), is gaining momentum as a cost-effective and high-performance alternative, aiming to generate up to $30 billion in revenue by 2028, largely from GPU rentals for AI workloads.
- Strategic partnerships and investments, such as the $500 billion Stargate project and commitment to expand AI infrastructure in Europe, support Oracle's AI growth trajectory and position the company for competitive advantage in the AI and cloud market.
- Oracle's management targets at least $104 billion in revenue by fiscal 2029, with a revenue growth of 11% during the fiscal 2025 fourth quarter and an expected acceleration in cloud revenue to 40% in the coming year, aided by a surge in RPO (a key future revenue indicator) by 41% year over year.
