Oracle (ORCL) Focuses on Developing Large Data Centers, Reports Bloomberg

Oracle Corporation (NYSE:ORCL) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 20, Bloomberg reported that Oracle Corporation (NYSE:ORCL) is spending tens of billions of dollars to develop large data centers amid energy and material shortages. This consists of the plan to spend over $1 billion a year just to power 1 new megasite in West Texas with gas generators rather than wait for utility connection. Bloomberg also reported that AI happens to the biggest driver of OCI’s growth. The majority of Oracle Corporation (NYSE:ORCL)’s backlog, or booked deals, remain tied to customers training or deploying AI models with GPU-based servers.

Oracle (ORCL) Focuses on Developing Large Data Centers, Reports Bloomberg

In Q4 2025, the company’s total quarterly revenues increased 11% YoY in USD and constant currency to $15.9 billion. Oracle Corporation (NYSE:ORCL)’s cloud services and license support revenues rose by 14% in USD and constant currency to $11.7 billion. The company highlighted that its cloud infrastructure growth rate is projected to increase from 50% in FY 2025 to more than 70% in FY 2026. Also, RPO is likely to grow over 100% in FY 2026.

Kovitz Investment Group Partners, LLC, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Oracle Corporation (NYSE:ORCL) continues to demonstrate strong traction in scaling its cloud infrastructure and applications businesses. Growth in contracted backlog exceeded expectations at +41% in FY25 and management is expecting it to more than double in FY26. Revenue growth is also expected to accelerate materially with management indicating they expect to exceed their prior targets for the next two years. Lastly, the company recently disclosed that their fiscal year is off to a strong start with multiple new cloud contracts signed already, including one that is expected to generate more than $30B in annual revenue beginning in FY28.”

While we acknowledge the potential of ORCL to grow, 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 AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.