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Global IT spending is expected to reach $5.43 trillion in 2025.
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Oracle is experiencing robust demand for its cloud services from prominent AI companies, including OpenAI, Meta, and Nvidia.
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Micron is benefiting from the supply-demand mismatch for its memory chips.
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10 stocks we like better than Oracle ›
The role of the technology sector in the global economy is expanding rapidly. According to the researcher Gartner, global spending on information technology (IT) is estimated to reach $5.43 trillion in 2025.
The rapid adoption of artificial intelligence (AI) worldwide is expected to drive a significant portion of this spending. The tech-heavy Nasdaq-100 index is up almost 17% so far, driven mainly by AI-powered giants.
Several technology leaders are building a competitive moat in areas like semiconductors and cloud computing. In case you have $5,000 not required to pay bills or for contingencies, then investing in one or both of these stocks can pay rich returns in the long run.
Over the last few years, Oracle (NYSE: ORCL) has evolved from a database specialist to a leading AI-driven cloud infrastructure company. The company’s cloud infrastructure is now powering complex AI workloads for several prominent companies, including OpenAI, Meta Platforms, Nvidia, and Advanced Micro Devices. Its large-scale data centers are proving faster and cheaper for training huge AI models.
And by being the largest custodian of high-value private data globally, Oracle is also well positioned to capitalize on the growing opportunity in AI inference (real-time deployment of AI models). The company uses vectorization to store huge amounts of data in its AI databases, which all prominent large language models easily understand.
And by enabling the connection of all of its clients’ data sources with large language models inside the cloud, Oracle allows clients to leverage advanced AI reasoning without compromising on the safety and security of their private data.
Cloud infrastructure revenue surged 54% year over year to $3.3 billion in the first quarter of fiscal 2026 (ending Aug. 31). Management now expects the business to see revenue soar 77% year over year to $18 billion in fiscal 2026 and scale up rapidly toward $32 billion by 2027.
These are achievable targets, especially after the company signed a $300 billion contract with OpenAI for providing computing capacity over the next five years. Oracle’s $455 billion backlog at the end of the first quarter will continue to drive up its overall revenue for the next few years.
