Oracle’s (NYSE: ORCL)<\/a> stock price jumped 36% in a single session on Sept. 10<\/a> after the company announced plans to increase Oracle Cloud Infrastructure (OCI) revenue by more than 14-fold in five years. But that news proved to be just one splash amid a sea of waves.<\/p>\n Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More \u00bb<\/a><\/p>\n Reports indicate that Oracle and Meta Platforms (NASDAQ: META)<\/a> are in talks on a $20 billion cloud computing<\/a> deal. And Oracle and OpenAI are building on their $300 billion partnership with the rollout of five new data centers custom-built for artificial intelligence<\/a> (AI).<\/p>\n Despite its expensive valuation, here’s why Oracle continues to stand out as one of the best AI stocks to buy among the “Ten Titans<\/a>,” which is the “Magnificent Seven<\/a>” plus Broadcom, Oracle, and Netflix.<\/p>\n Image source: Getty Images.<\/p>\n 1. Oracle is building the future of AI data centers<\/p>\n Established cloud giants like Amazon (NASDAQ: AMZN)<\/a> Web Services (AWS), Microsoft (NASDAQ: MSFT)<\/a> Azure, and Alphabet’s (NASDAQ: GOOG)<\/a> (NASDAQ: GOOGL)<\/a> Google Cloud serve a variety of general compute customers. However, Oracle’s data centers are specifically designed for AI.<\/p>\n Oracle is a good example of why lacking a first-mover advantage isn’t a deal-breaker. Oracle’s data centers are newer and faster. And it’s bringing over 70 of them online in just a few years, which is why it expects OCI growth to reach an inflection point in fiscal 2027.<\/a><\/p>\n When it comes to high-performance computing, OCI is magnitudes faster than alternatives — saving customers time and money for AI workflows. Oracle achieves this advantage by embedding native versions of its database services into the big three clouds to boost performance. This is why I’m predicting Oracle will become the top cloud for AI by 2031<\/a>, making it one of the best cloud computing stocks to buy for risk-tolerant investors.<\/p>\n 2. Oracle is landing major deals with leading hyperscalers<\/p>\n Oracle is winning high-value contracts<\/a> across the AI landscape, from Meta Platforms to OpenAI. Reports are that Oracle’s $20 billion deal with Meta involves a multiyear agreement for training and deploying Meta’s AI models.<\/p>\n The OpenAI deal is the backbone of Oracle’s five-year roadmap. But it depends on OpenAI raising money<\/a> — as OpenAI is unlikely to turn free cash flow<\/a> positive anytime soon.<\/p>\n Fortunately, that doesn’t seem to be a problem. OpenAI plans to transition from a nonprofit to a Public Benefit Corporation, which is a corporation with philanthropic and community impact requirements rather than a purely profit-driven objective. On Sept. 22, Nvidia (NASDAQ: NVDA)<\/a> announced up to a $100 billion investment in OpenAI to power next-generation AI models<\/a>. This is great news for Oracle, as its cloud growth depends on OpenAI’s financial stability.<\/p>\n On Sept. 23, OpenAI said that it is teaming up with Oracle and SoftBank on five new AI data centers under its Stargate AI infrastructure platform. In that press release, OpenAI put a dollar figure of over $300 billion on its 4.5-gigawatt (GW) Stargate capacity partnership with Oracle. The company also said that Stargate’s capacity will be nearly 7 GW and over $400 billion of investment over the next three years, and reach $500 billion of committed investment, or 10 GW of committed capacity, before the end of the year. This 10 GW number is the same figure used by Nvidia in its strategic partnership announcement, which aims to invest progressively in OpenAI as each GW is deployed.<\/p>\n This is all great news for Oracle, which will collaborate with Nvidia to develop data center and cloud computing infrastructure for OpenAI. This powerhouse of a partnership provides a clear runway for sustained earnings growth for Oracle. And it justifies its aggressive capital expenditure ramp-up and leveraged balance sheet<\/a>.<\/p>\n 3. Oracle continues to grow its partnerships with AWS, Azure, and Google Cloud<\/p>\n An integral aspect of Oracle’s investment thesis is that its competitors are also its customers. AWS, Microsoft Azure, and Google Cloud are major Oracle customers through OCI’s multicloud offering.<\/p>\n Multicloud enables customers to manage workloads across multiple cloud providers while leveraging the Oracle database. The idea is to minimize data movement by bringing AI to the dataset rather than bringing the dataset to the cloud provider. Again, this goes back to Oracle embedding native versions of its database into the big three cloud providers, which reduces latency costs and lowers compliance risk.<\/p>\n AI is an exciting investment opportunity because it unlocks a new way to leverage data through large language models<\/a> across text, images, audio, video, and code. By bringing the dataset to the source rather than moving it around, AI models can operate much faster and at a lower cost, which helps Oracle win business even if customers use a rival cloud provider instead of OCI.<\/p>\n Oracle is worth its premium price<\/p>\n Oracle is a pure-play business-to-business company. It doesn’t have a lot of moving parts and consumer-facing divisions like Amazon, Microsoft, or Alphabet. It can win business by offering its integrated suite of cloud, database, and enterprise software services, or leverage its database services with a different cloud giant.<\/p>\n Based on multicloud alone, Oracle already had a compelling investment thesis<\/a> before the announcements with Meta and OpenAI. But these deals take Oracle to the next level by showcasing the value of its next-generation data centers and its cross-selling opportunities for enterprises.<\/p>\n Oracle stock has run up a lot in recent years. It’s far from cheap at 46.1 times forward earnings<\/a>. However, the price is arguably worth it for investors who believe that Oracle will play a pivotal role in OpenAI’s data center buildout for years to come.<\/p>\n Should you invest $1,000 in Oracle right now?<\/p>\n Before you buy stock in Oracle, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Oracle wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you\u2019d have $652,872!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,092,280!*<\/p>\n Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,062% \u2014 a market-crushing outperformance compared to 189% for the S&P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of September 22, 2025<\/p>\n Daniel Foelber<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Netflix, Nvidia, and Oracle. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy<\/a>.<\/p>\n The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Oracle\u2019s data centers are purpose-built for artificial intelligence (AI). The tech giant is winning high-value contracts…\n","protected":false},"author":2,"featured_media":84544,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[64,63,257,105],"class_list":{"0":"post-174931","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-au","9":"tag-australia","10":"tag-computing","11":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/174931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=174931"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/174931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/84544"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=174931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=174931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=174931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n