What Is One of the Best Cloud AI Stocks to Buy Right Now?

Key Points

• Oracle's cloud business is accelerating.

• Its remaining performance obligations grew 359% year over year last quarter to $455 billion.

• Oracle is demonstrating a competitive advantage in building large-scale data centers for demanding AI workloads.

• 10 stocks we like better than Oracle ›

Investment in computing infrastructure to support artificial intelligence (AI) is reshaping the cloud computing market, and Oracle (NYSE: ORCL) might be the best cloud stock to bet on. Its focus on offering the greatest customer flexibility and processing speeds for AI applications is driving accelerating growth that could send the stock higher.

Image source: Getty Images.

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 »

World-class AI companies are choosing Oracle

Oracle's cloud infrastructure (OCI) segment posted a revenue increase of 55% year over year last quarter, up from 52% in the previous quarter. Oracle signed deals with multiple tech giants, including ChatGPT's OpenAI, sending its remaining performance obligations up 359% year over year to $455 billion.

These results show demand for AI training, inference, and data analytics is accelerating, and Oracle is in pole position. It has become the go-to cloud provider for AI workloads. Oracle's customers can run its cloud services on other platforms from Amazon, Google, and Microsoft, providing the utmost flexibility.

The spike in remaining performance obligations shows Oracle's ability to scale rapidly. Leading AI companies are choosing Oracle to train their AI models due to its ability to build large data centers that are faster and more cost-efficient than any of its competitors.

Analysts expect Oracle's earnings to grow 15% annually in the coming years, but these estimates have been trending up. Management expects its cloud infrastructure business to reach $144 billion in revenue in four years, up from $18 billion this year. This should support more gains for Oracle investors.

Should you invest $1,000 in Oracle right now?

Before you buy stock in Oracle, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d 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’d have $1,092,280!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool 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.