Oracle Corporation (ORCL): A Bull Case Theory

We came across a bullish thesis on Oracle Corporation on Pitchstack Investing Substack . In this article, we will summarize the bulls’ thesis on ORCL. Oracle Corporation’s share was trading at $210.87 as of 18th June. ORCL’s trailing and forward P/E were 48.59 and 31.25 respectively according to Yahoo Finance.

Was Jim Cramer Right Calling ServiceNow (NOW) an Exception to the Software Last Year?

A team of software engineers at desks working on code for a cutting-edge cloud computing solution.

Oracle Corporation, a global leader in enterprise technology, has continued its growth trajectory with strong fiscal Q4 results, underscoring its strategic positioning in the cloud and AI infrastructure space. The company reported an 11% year-over-year revenue increase to $15.9 billion, beating consensus estimates by $300 million.

This performance highlights Oracle’s successful transformation from a legacy database provider into a modern cloud powerhouse. A key driver of this growth is its cloud infrastructure segment, which reported a remarkable 51% increase in revenue for fiscal FY25, totaling $10.2 billion. Notably, consumption-based revenue rose by 59%, indicating strong customer demand and scalable adoption of Oracle’s cloud services.

What sets Oracle apart from its larger cloud competitors is its specialized focus on high-performance, mission-critical workloads—capabilities that are increasingly vital in powering artificial intelligence applications. As enterprises seek infrastructure that can reliably support the massive computational requirements of AI models, Oracle is emerging as a preferred partner. This is especially significant given the growing importance of AI integration across industries, and Oracle’s infrastructure appears well-suited to capitalize on this secular trend.

By positioning itself as a top-tier provider for AI and mission-critical systems, Oracle not only enhances its competitive edge but also unlocks long-term growth potential. With robust fundamentals, accelerating cloud momentum, and a strategic focus on AI, Oracle offers investors a compelling opportunity for continued upside. Its recent results affirm confidence in its ability to deliver sustained performance in an increasingly digital and AI-driven enterprise environment.

Previously we covered a bullish thesis on Microsoft Corporation (MSFT) by Long-term Investing in February 2025, which highlighted the company’s strong AI and cloud growth, strategic OpenAI partnership, and robust financial performance despite external competitive pressures. The company’s stock price has appreciated by approximately 17% since our coverage. This is because the thesis played out as Microsoft maintained its momentum in AI and cloud. The thesis still stands as Microsoft continues to scale its AI infrastructure efficiently. Pitchstack Investing shares a similar view but emphasizes Oracle’s focus on high-performance, mission-critical workloads and its differentiated AI infrastructure strategy.

Oracle Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held ORCL at the end of the first quarter which was 105 in the previous quarter. While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.