5 High Growth Mega Cap Stocks to Buy And Hold For Next 10 Years

4. Oracle Corporation (NYSE:ORCL)

On March 24, Tal Liani of Bank of America Securities reinstated coverage of Oracle Corporation (NYSE:ORCL), assigning a $200 price target. The major factors in the firm’s bullish thesis on ORCL are its massive backlog and its ability to cater to increasing AI investments in the US. Oracle has a remaining performance obligation (RPO) of $553 billion, which offers good visibility into the company’s future earnings.

The analyst also pointed out that a major risk in the bull thesis is the customer concentration. A large part of this backlog comes from OpenAI.OpenAI intends to invest a total of $600 billion in computing power by 2030. Previously, in October, OpenAI CEO Sam Altman said the company could spend up to $1.4 trillion on infrastructure by 2033.

One month ago, BNP Paribas analyst Stefan Slowinski commented on how this particular risk is now reducing for Oracle Corporation (NYSE:ORCL):

With a more defined cash burn outlook and OpenAI’s $100bn+ capital raise closing soon (with another $80bn likely required thereafter to reach FCF breakeven), we believe this reduces the OpenAI counterparty risk for ORCL over the near term.

Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas, and was founded in June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.