Could Oracle Become America’s Next $1 Trillion Technology Stock?

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As I write this, nine American companies have a market capitalization of $1 trillion or more. Most of them are from the technology and technology-adjacent sectors, which are generating phenomenal growth thanks to emerging industries like artificial intelligence (AI).

Oracle (ORCL 2.60%) came within a whisker of joining the exclusive $1 trillion club last year when its market cap briefly topped $940 billion, but its valuation has since tumbled to around $480 billion following a 49% collapse in its stock price.

Oracle is building some of the best AI data center infrastructure in the world, but there have been concerns about its growing debt, and also that some of its biggest customers won’t be able to fulfill their massive orders for computing capacity. Fortunately, the company’s operating results for its recent fiscal 2026 third quarter (ended Feb. 28) put some of those worries on the back burner.

Can Oracle stock turn around from here and stage another run to the $1 trillion club?

Image source: Getty Images.

Industry-leading AI infrastructure

AI development requires a substantial amount of computing power, which is why most of it happens inside large, centralized data centers. They house thousands of specialized chips called graphics processing units (GPUs), which are primarily supplied by Nvidia and Advanced Micro Devices. Most businesses can’t afford to build this infrastructure in-house because it costs billions of dollars, so they choose to rent it from cloud providers like Oracle instead.

Oracle’s data centers are among the best in the world. They use the company’s proprietary remote direct memory access (RDMA) networking technology, which moves data between chips and devices more quickly than traditional Ethernet networks. Most AI developers pay for cloud computing capacity by the minute, so faster processing speeds can result in substantial cost savings over the long term.

Oracle’s infrastructure also offers tremendous scale, allowing developers to…

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