We recently published Top 10 Trending Stocks Everyone’s Watching in Q4. Oracle Corp (NYSE:ORCL) is one of the trending stocks everyone’s watching.
Morningstar’s Dave Sekera said in a recent program on Schwab Network that Oracle’s eye-popping guidance caught his attention. Here is why:
“Well, it’s funny. So, on my podcast a couple weeks ago, I was joking, you know, with my co-host there that I’m starting to get kind of these, you know, mid 90s, late 90s kind of vibes. Really what caught my attention was Oracle Corp (NYSE:ORCL) when they came out with their guidance for their cloud business doing 10 billion of revenue last year, doing 17 to 18 billion this year but increasing it 14-fold by 2030 to 144 billion, really just an eye-opener. And again, it’s not like there aren’t other people—you’ve already got Amazon, you’ve got Microsoft, you got Google in that cloud business as well, so already a lot of competition. So when I’m seeing those kinds of numbers put up out there, really trying to understand how much revenue, how much efficiency is there going to be over the course of the next decade to really support the amount of capital that we’re putting in there today. So, to some degree, when I’m looking at our AI names, based on our base case, they’re pretty fully valued.”
Photo by Austin Distel on Unsplash
Headwaters Capital Management stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:
“The catalyst for the September AI trade was Oracle Corporation’s (NYSE:ORCL) announcement of a 5-year contract with OpenAI for $300B (implying annual contract value of $60B) to host the company’s LLMs at Oracle data centers beginning in 2027. While the market has grown desensitized to these large headline numbers, it’s useful to step back and put these figures into context from the perspective of both the magnitude of spending and return on investment. It’s easiest to start with the amount of investment that five companies are collectively spending on AI. The table below outlines CAPEX spending by the five hyperscalers and compares it with the other 495 companies in the S&P 500. In 2026, these five hyperscaler companies are expected to spend $405B of CAPEX, nearly all of this related to AI infrastructure build.
