The Stock Market Is Underestimating the Massive Growth Potential of This Artificial Intelligence (AI) Giant That Could Easily Become a $1 Trillion Company
Oracle stock may have underperformed the market over the past year, but it could deliver terrific gains by accelerating the conversion of its massive backlog into revenue.
The Stock Market Is Underestimating the Massive Growth Potential of This Artificial Intelligence (AI) Giant That Could Easily Become a $1 Trillion Company
Overview
Oracle (NYSE: ORCL) is one of the most important artificial intelligence (AI) infrastructure companies in the world, building data centers for major hyperscalers, AI companies, and many others.
The booming demand for AI solutions and services has driven a surge in the need for dedicated AI data centers. Goldman Sachs, for instance, predicts that demand for agentic AI solutions will drive a 24x increase in token consumption. An AI token is the unit of data that AI models process during the training and inference phases.
Details
Not surprisingly, the massive jump in AI token consumption will create a need for more AI infrastructure. Oracle is filling this gap by aggressively adding new data center capacity. However, the company's shares have underperformed over the past year, dropping by more than 10%, compared with the 37% jump in the tech-laden Nasdaq Composite index.
Source
Originally published at www.fool.com.
