This burnt hot artificial intelligence (AI) stock just exploded high and was able to head to the $1 trillion club much earlier than expected

Key Points

• Oracle's extensive assortment of cloud, databases, and enterprise software products is found in 98% of Fortune 500 companies.

• The rapid adoption of AI has driven a significant increase in our remaining performance obligations (RPOs). This will drive future growth.

• Oracle's fundamental position in the IT ecosystem could help the industry stand up to $1 trillion clubs more than planned.

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Over the past few years, we have not denied the trajectory of artificial intelligence (AI). Many companies that have tried to adopt this game-changing technology rank the world's largest companies when measured by market capitalization. When the stock market closed on Tuesday, there were 11 members of the $1 trillion-dollar club, most of which have a big connection to AI.

After the market closes, the industry is stubborn Oracle (NYSE: ORCL) I've reported results for the most recent quarter, and nevertheless do not have Wall Street expectations, inventory rose, and we never looked back. why? On an astonishing event turn, the company signed a multi-billion dollar deal, pushing its future growth potential into overdrive.

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Given the magnitude of these transactions, it seems that the writing is on the wall that Oracle joins this elite fraternity. The company's growth is a turning point, and management commentary suggests that the company has a long, AI-centric runway for future growth.

A trusted partner

Oracle holds a coveted location in the tech community, as around 98% of Global Fortune 500 companies make up their customer roles. Industry Stalwart offers its customers a strategic combination of cloud, databases and enterprise software. Naturally, when the transition to AI began in earnest, this prisoner of war audience began to rely on Oracle to expand its cloud and AI solutions.

The company's growth has been uneven, but the future looks bright. In the first quarter of 2026 (ends August 31), total revenues rose 11% year-on-year to $14.9 billion, while earnings per share (EPS) increased by 6%. Both numbers accelerated compared to Q4 I missed it Wall Street consensus estimates sought revenue of $15 billion and an adjusted EPS of $1.48.

But that wasn't a headline. Last quarter, CEO Safra Catz noted that the company had reached a “twitter point” and accelerated revenue growth, noting that it was “just rising from here.”

It turned out to be an understatement. Oracle has reported explosive growth in remaining performance obligations (RPOs), contractual obligations that are not yet included in revenue.

The Cats explained, “We call the results 'surprising'” and “We signed a multi-billion dollar deal with three different customers.” He went on to say that demand for Oracle Cloud is “continuing to build.” The company expects to sign “it's likely to add several billion dollar customers and RPOs will exceed half a trillion dollars.”

With an eye on the future, Oracle forecasts it will increase its revenues from Oracle Cloud Infrastructure from 77% to $18 billion this year, but that's just the beginning.

• Cloud revenue for 2027 was $32 billion, up 78%.
• Accounting 2028 Cloud revenue was $73 billion, up 128%.
• Accounting 2029 Cloud revenue was $144 billion, up 97%.

Take care, this is it just Oracle Cloud Infrastructure revenue and Catz stated, “Most of the revenue from forecasts over the past five years is Already reserved In reported RPO. “That means future contracts will likely increase these growth targets.

I just got a road to $1 trillion Many short

Oracle leverages its position as a trusted partner so that its customers can choose the right AI and cloud solutions and choose profits from expanding adoption of generated AI.

in front As a result today, Wall Street expects Oracle to generate $667.5 billion in revenue in fiscal year 2026 (starting June 1), and P/s needed the Oracle needed to generate about $9.8 million in revenue each year to support a $1 trillion market cap, assuming that the P/s ratio of about 10 previous price-to-sale (P/S) remained constant. Given these figures, it is possible that Oracle could have achieved a market capitalization of $1 trillion before 2028.

Wall Street still didn't have time to update the model, but given the magnitude of the company's results, previous predictions are out of the window. Aside from unexpected circumstances, I predict Oracle will join a trillion dollar club. Within the next 12 months.

Estimates for the market potential of generator AI continue to rise. Big Four 4 accounting company Price House Waterhouse Coopers (PWC) calculates that by 2030 it could be worth $15.7 trillion per year. This indicates the magnitude of the opportunity.

Given the recent contract victory, Oracle proves that it is leveraging its experience to benefit from this windfall. Writing is on the wall, and Oracle is poised to join Trilliona's fraternity in a short period of time.

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Danny Bena has no position in any of the stocks mentioned. Motley Fools holds and recommends Oracle. Motley Fools have a disclosure policy.