The Newest Member Of The Mag 7

The current AI boom just had a stunning revelation, and I will tell you about it here.

Read this to understand how AI tech could potentially enlarge to the Magnificent 8.

If you want to invest in a company that is guaranteed to be part of the AI boom, then look no further than Oracle (ORCL).

They were mainly known as a data center infrastructure stock, but that service now has an AI application and has re-injected real mojo back into the business model.

The company has turned around its fortunes and was considered a dead fish only just a few years ago.

They missed earnings, but nobody cared about that because of what they said after.

Investors just wanted to hear about what they said about AI, and what they said was that they expect an explosion of revenue via AI.

Anything short of that AI trump card these days, then the stock will sink.

Nobody even cared that they woefully missed earnings – it’s small peanuts in the broader AI landscape. 

The market was fixated on the company’s explosive outlook for cloud infrastructure, fueled by artificial intelligence demand.

The core driver was Oracle’s remaining performance obligations (RPO), a key metric of future revenue from signed contracts, which skyrocketed 359% year-over-year to $455 billion—up from $99 billion a year earlier.

CEO Safra Catz highlighted four multibillion-dollar deals with three customers, including major AI players like OpenAI, xAI, and Meta, pushing Oracle Cloud Infrastructure (OCI) bookings toward a half-trillion-dollar backlog.

This reflects surging enterprise demand for scalable, cost-effective cloud capacity to train and deploy AI models.

Cloud revenue overall grew 28% to $7.2 billion, with OCI (infrastructure-as-a-service) up 55% to $3.3 billion, outpacing rivals and validating Oracle’s pivot from legacy database software to a full-stack AI hyperscaler.

Oracle projected OCI revenue at $18 billion 2026—a 77% jump from $10.3 billion in 2025, escalating to $144 billion by 2030, implying a compound annual growth rate exceeding 70% through the decade.

Co-founder Larry Ellison emphasized integrations with leading large language models like ChatGPT, Gemini, and Grok, enabling seamless AI reasoning on customer data stored in Oracle databases.

This positions Oracle as a “fourth hyperscaler” alongside AWS, Azure, and Google Cloud, capturing share in the $130 billion+ AI infrastructure market via partnerships like the OpenAI Stargate project for 4.5 gigawatts of U.S. data centers.

For the tech sector and stocks through the rest of 2025, Oracle’s results are a resounding bullish signal, reinforcing AI as the dominant growth narrative.

The sector, which comprises about 30% of the overall index, has been propelled by AI infrastructure spending, projected to exceed $200 billion globally this year. Oracle’s revenue explosion validates that enterprises are committing billions to cloud AI, easing fears of a post-hype slowdown.

This bodes well for other popular tech stocks like Nvidia, Broadcom, and the rest of big tech, whose cloud arms could see symbiotic gains from Oracle’s multicloud integrations.

Overall, Oracle’s surge signals sustained AI momentum, likely propelling tech indices higher through year-end.

Expect 30%% sector growth if bookings convert to revenue, though volatility persists from earnings cycles.

AI enablers will do overwhelmingly well in the short-term, and Oracle is certainly one of those stocks.

At this point, it is fair to call ORCL the newest of the AI darlings.