Oracle Corporation (ORCL): A Bull Case Theory

We came across a bullish thesis on Oracle Corporation on Jordi Visser’s Substack. In this article, we will summarize the bulls’ thesis on ORCL. Oracle Corporation's share was trading at $301.41 as of September 17th. ORCL’s trailing and forward P/E were 69.77 and 44.05 respectively according to Yahoo Finance.

Oracle’s latest earnings report delivered one of the most extraordinary signals yet of AI’s real-world adoption. The company’s Remaining Performance Obligations surged to $455 billion, up 359% year-over-year, with more than $300 billion added in just the last quarter. Buried in that staggering figure is the confirmation that inference—the deployment of AI into live workflows—is exploding. Unlike training, which occurs episodically, inference is perpetual, compounding with every interaction and generating durable economic impact.

Oracle executives noted that one customer even requested all of the company’s available inference capacity, highlighting demand that Larry Ellison called “insatiable.” This surge effectively puts Oracle’s contracted pipeline on par with the quarterly increase in U.S. nominal GDP, underscoring the macro significance of the shift. Yet despite the scale of the numbers, investor reaction has been muted compared with the frenzy that surrounded the DeepSeek panic earlier this year, reflecting a broader skepticism toward AI.

Oracle’s results make clear that this skepticism is misplaced: demand is real, accelerating, and stretching supply chains for compute and power. The company’s growing role in multi-cloud environments alongside Microsoft, Google, and Amazon further confirms that no single provider can meet the scale of demand. Oracle’s earnings should not be seen as an isolated corporate story but as a flashing macro data point of structural economic change, validating AI’s transition from promise to productivity. For investors, the market’s dismissal of these results creates an opportunity: the inflection point in AI adoption is already here, and Oracle is at its center.

Previously we covered a bullish thesis on Microsoft Corporation (MSFT) by Long-term Investing in February 2025, which highlighted strong execution across cloud and AI, robust revenue growth, and its partnership with OpenAI. The stock has appreciated approximately 24.47% since our coverage as AI-driven growth offset Azure concerns. The thesis still stands as Microsoft’s AI infrastructure remains intact. Jordi Visser shares a similar bullish view on Oracle, emphasizing inference demand growth.

Oracle Corporation is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 124 hedge fund portfolios held ORCL at the end of the second quarter which was 97 in the previous quarter. While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.