Could Oracle Be Worth $1 Trillion By 2030?

As companies have found new opportunities in artificial intelligence (AI), their valuations have risen in recent years. There are seven companies right now with valuations of around $1 trillion or more.

But with the economy continuing to grow, and with artificial intelligence able to propel stocks higher, there could be many more stocks joining this list in the future.

A potentially undervalued AI stock these days is Oracle (ORCL 2.59%). It has gained momentum due to the opportunities in AI, but is still nowhere near the $1 trillion mark. Today, its valuation is $470 billion. Could it hit the $1 trillion mark by the end of the decade?

Why Oracle Could See Stronger Growth Going Forward

The main takeaway from Oracle is that it’s a good, safe tech company known for databases, but its quarterly growth rate has often been in the single digits — even recently, as companies spend more on AI.

ORCL operating income (quarterly YoY growth), data by YCharts; YoY = year over year.

Oracle needs to accelerate if it is to attract the attention of growth investors and if its valuation is to eventually double to $1 trillion.

Companies investing in AI chips and new technologies will eventually need more infrastructure and database systems to host, support and analyze all that data, which is where Oracle can play a key role .

It also helps companies improve their productivity with more than 50 role-based AI agents that are available in the Oracle Fusion Cloud Applications Suite. These agents can help automate processes for companies in many areas of their operations.

The company is also optimistic about a deal it recently reached Amazonwhereby the latest technology and database software will be available in the cloud through Amazon Web Services, another growth opportunity.

Oracle is already seeing its efforts pay off, as remaining performance obligations for the first quarter of fiscal 2025 (which ended Aug. 31) were $99 billion, up 53% year over year. This backlog will help drive the company’s growth in the coming quarters.

The Path to a $1 Trillion Market Cap

Oracle shares are up 61% this year, but for the company to be worth $1 trillion, the stock will need to rise about 111%. Over a five-year period, it should average a little more than 16% annual growth, which means it needs to be well above the market’s historical rate of around 10%.

Given the opportunities for Oracle and its important role in shaping AI models, it doesn’t seem all that unlikely that the stock will outperform the market in the coming years. It’s just a question of how high its annual returns will actually go — an average of 16% might be a bit optimistic to expect.

But demand will undoubtedly exist for his services. According to the estimates of the technology research company Gartnerby 2026, 80% of enterprises will either have generative AI applications or at least use generative AI APIs — which would increase dramatically from less than 5% last year.

Assuming AI remains a hot investment trend for the foreseeable future, it seems likely that Oracle will benefit and outperform the markets, possibly leading to a valuation that eclipses $1 trillion. It’s just a question of whether that happens before or after 2030.

Another modestly priced purchase

Oracle stock has been a hot buy this year, but it’s still modestly priced at a forward price-earnings multiple of 27. By comparison, the average stock in Technology Select Sector SPDR Fund trades at 30 times expected future earnings.

Overall, this is one of the best AI stocks to add to your portfolio today – there’s no doubt in my mind that Oracle will eventually join the $1 trillion club. given its fantastic opportunities.