Broadcom has established itself as a prominent player in the artificial intelligence (AI) infrastructure arena, thanks to its custom-designed AI chips that are highly sought after by major tech companies.
Broadcom’s stock has appreciated significantly—up by 388% over the last three years—and the company boasts a market capitalization of over $1 trillion. Investors have the opportunity to purchase it directly. Additionally, there’s a noteworthy potential for growth. However, another AI infrastructure company has also experienced a remarkable stock surge that could push its market cap close to the $1 trillion mark.
Is AI set to create the world’s first millionaire? Our team recently analyzed a lesser-known company described as an “essential monopoly” for crucial technology utilized by both Nvidia and Intel.
This company is Oracle (NYSE:ORCL), with a current market cap of $614 billion. Below, we’ll explore why Oracle might soon find itself among the ranks of Broadcom with a $1 trillion market cap.
Potential for Growth from Oracle’s Current Position
Oracle plans to announce its fourth-quarter fiscal results for 2026 after market close on June 10th. There was a substantial uptick in the stock price three months ago following a strong third-quarter report.
Oracle’s financial performance exceeded expectations, prompting an upward revision of its full-year outlook for fiscal 2027. Recently, Oracle’s stock has gained momentum, climbing 47% since early April. It currently trades at a relatively appealing forward P/E ratio of 27, compared to a tech-heavy index like the Nasdaq Composite, which averages around 40x.
Investing in Oracle at this pricing before its quarterly results could be strategic; the company’s track record shows it has met and surpassed Wall Street expectations in the past.
It’s substantial to note that Oracle’s performance obligation (RPO) was $553 billion at the close of the third quarter, marking a 325% year-over-year increase. This suggests a robust demand for its cloud computing services. Moreover, Oracle’s customer strategy of allowing hardware flexibility and upfront payments is expected to positively influence revenue and mitigate cash flow concerns.
All this indicates that analysts anticipate Oracle’s earnings growth to accelerate.
Is a $1 Trillion Market Cap Within Reach?
For Oracle to join the $1 trillion market cap club, its stock would need to rise by approximately 63%. As per projections, earnings per share could hit $10.82 by fiscal year 2028, in contrast to an estimated $7.42 at the end of fiscal year 2026.
Forecasts indicate a potential 21% annual growth rate in profits over the next two years. If Oracle trades at a forward multiple of 35, the stock price might soar to around $379 within that timeframe, reflecting a possible increase of 77%. With analysts increasingly rewarding AI infrastructure firms, this milestone could be reached much sooner.
Should You Consider Buying Oracle Stock Now?
Before jumping into buying Oracle stocks, here’s something to think about:
The Motley Fool’s analyst team has pinpointed their ideal picks for investment, and Oracle doesn’t quite make the cut as one of the top ten stocks they recommend for substantial long-term growth.
People tend to pay attention to these recommendations due to their strong historical performance; they typically outperform the S&P 500 significantly.
*Note: Stock Advisor will return on June 7, 2026.
